Quadient reports drop in parcel locker revenue for Q1 2024

French postal and parcel technology supplier Quadient saw its parcel locker revenues decline by 6.3% year-on-year (YoY) in the first quarter of the year, as changes to its operating model in some markets impacted sales figures, but the firm confirmed that volume growth remained strong and that the company has made a solid start to 2024.

The company’s Parcel Locker Solutions business unit saw sales reach €20 million in Q1 2024 (ending April 30, 2024), a 3.4% decrease on an organic basis and a 6.3% decrease on a reported basis compared to Q1 2023.

Subscription-related revenue was up 2.8% organically in Q1 2024, benefiting from the continued deployment of the UK open network, as well as the contribution of the existing installed base, supported by the higher number of carriers, including DHL, DPD UK, and Evri, committed to using Quadient’s open networks, the firm confirmed.

Mixed results

However, an increased focus towards a usage-based model is still impacting subscription-related revenue. In Q3 last year, Quadient announced that its commercial agreement with Yamato in Japan had changed from a rental fee model to a remuneration based on a fee per parcel.

Meanwhile, the global usage rate of the platform remained solid, standing at 58% in Q1 2024. Overall, subscription-related revenue stood at 68% of total revenue in Q1 2024, up from 65% in Q1 2023.

License and hardware sales were down 20.2% organically in Q1 2024. Hardware sales were impacted by lower installations in North America, Quadient confirmed.

“Parcel Locker Solutions’ revenue remains impacted by the evolution of our commercial agreement towards volume-based revenue for Yamato,” said Geoffrey Godet, Chief Executive Officer of Quadient. “However, the increase in volumes both for the drop off and the pick-up of parcels is strong and confirms the steady deployment of our new open networks in UK and France.”

Locker network growth

Quadient’s global locker installed base reached approximately 20,800 units at the end of Q1 2024 versus 20,200 units at the end of FY 2023. This reflects an acceleration in the pace of installation of new lockers, notably in the UK, fuelled by the partnerships signed by Quadient to host parcel lockers in new locations.

Recent partnerships include Freedom Leisure, Homebase, Royal Mail, Stonegate Group, UPS and Motor Fuel Group (MFG). The Open Locker Network is also used by DHL, DPD UK, and Evri. In the UK, Quadient plans to roll out 5,000 open locker locations across the UK.

KeyNest partnership

Most recently, Quadient announced in May that it had signed an agreement with KeyNest, a global key exchange service for Airbnb hosts and property professionals, for a national partnership in the UK.

Under the new agreement, Parcel Pending by Quadient lockers can now be used in the UK to securely store and exchange physical keys in multiple cases, including between friends and family, for Airbnb rentals, cleaning services, property management, car sharing and more.   

Group highlights

Overall, the Quadient Group, which includes Intelligent Communication Automation, Parcel Locker Solutions and Mail-Related Solutions, saw Q1 2024 consolidated sales reach €261 million, a 3.2% increase on a reported basis, and 1% organic growth compared to Q1 2023.

The reported growth includes an almost flat currency impact and a positive scope effect of €6 million, which is related to Quadient’s acquisition of smart data collection firm Daylight Automation in September 2023 and the acquisition of Frama, a mailing and document management solutions provider, in February 2024.

Mail-Related Solutions sales reached €178 million in Q1 2024, down 0.2% on an organic basis. The reported growth stood at +2.5%, including the contribution of Frama. The integration of Frama is progressing well, Quadient noted, and the focus is now set on upgrading its installed base and initiating cross-selling efforts.

Meanwhile, the sales from Intelligent Communication Automation reached €64 million, up 6% organically and up 8.5% on a reported basis (including the contribution from Daylight) compared to Q1 2023.

Godet concluded: “2024 is off to a positive start for Quadient, in line with our expectations, with a solid 3.2% reported revenue growth for the first quarter. We remain confident in our ability to deliver positive organic growth in revenue and in current EBIT before acquisition-related expenses for the full-year.”