27. February 2020 | Press release

DPDgroup pursues its growth strategy and confirms its European leadership

Paris, 27 February 2020 – DPDgroup released its 2019 results on February 27 with revenues of €7.8 billion. This performance has been achieved in a highly challenging environment: increasing restrictions on delivery in city centres, an overall shortage of drivers and an increase in related costs.

  • €7.8 billion revenue, a 6.7% increase in revenue growth vs. 2018
  • 1.3 billion parcels delivered worldwide in 2019
  • 9.3 million parcels delivered in Europe on Cyber Monday (2 December 2019)
  • Growth in BtoC in Europe: an increase of 9% in volume
  • A majority stake acquisition in Lenton (Sept 2019) & BRT (Jan 2020)

 

1. Performance driven by profitable growth rather than by volumes

The total number of parcels delivered worldwide exceeded 1.3 billion, including a new European record of 9.3 million parcels delivered on Cyber Monday. With revenues of €7.8 billion, accounting for 30% of Groupe La Poste’s turnover, DPDgroup reinforces its major position as the first European road network in Europe. DPDgroup recorded a 6.7% increase in revenue compared to 2018.

Focusing on quality of service, DPDgroup reinforced its premium position and agreed on a significant rate increase in most countries with its customers.

Yves Delmas, Executive Vice President, COO Europe, comments:

“We are not volume-obsessed. Our 2019 performance is driven by profitable growth. As a market leader, it is our responsibility to pave the way toward a better pricing policy. Covering the increasing operational costs throughout Europe while improving our service performance as a premium player can only be made possible by fair pricing that our customers understand.”

The European market keeps growing, still largely driven by the BtoC segment. DPDgroup relies on a hybrid BtoB-BtoC network. In 2019, its BtoB segment still accounted for 55% of DPDgroup’s volumes, while DPDgroup’s BtoC volumes segment in Europe showed a 9% increase.

As first cross-border road network in Europe with its own operations in 23 countries, DPDgroup reported particularly stroThe European market keeps growing, still largely driven by the BtoC segment. DPDgroup relies on a hybrid BtoB-BtoC network. In 2019, its BtoB segment still accounted for 55% of DPDgroup’s volumes, while DPDgroup’s BtoC volumes segment in Europe showed a 9% increase.ng sales growth in Poland (+18%), the UK (+5.7%) in a context of economic slowdown and uncertainty in light of Brexit, France (+5.5% by DPD France and +6.6% by Chronopost), and Germany (+4.5%) in an environment of increasing costs.

On 29 January 2020, the European Parliament ratified the Brexit withdrawal agreement that had been ratified earlier in January by the UK Parliament. DPDgroup will closely follow the progress of negotiations and ensure being Brexit ready for all outcomes. Above all, DPDgroup will maintain operations as usual between the UK and the EU so that trade continues to be as frictionless and smooth as possible.

 

2. Premium services lie at the heart of the Group’s strategy

DPDgroup continues to meet customers’ expectations by offering outstanding services through its vast network:

  • “Predict”: letting end-consignees know the exact timeslot in which their parcel will arrive.
  • A network of more than 46,000 Pickup points across the world.

DPDgroup also offers new services for specific markets segments:

  • Food delivery: “Chronofresh” in France “, SEUR Frío” in Spain, and “DPD Food” in both the United Kingdom and Germany.
  • Express urban delivery: Stuart, a delivery platform and on-demand logistics solution, currently operates in 142 European cities (95 cities in France, 45 in the UK, Madrid & Barcelona in Spain) along with partnerships with major retail outlets such as Carrefour in France.
  • Smart urban depots: to improve everyday urban life, by giving customers greater delivery choices, while reducing our impact on the environment, DPDgroup now has 110 urban depots in 13 countries.
    In Spain, SEUR has 11 urban depots, enabling delivery by foot courier, bicycle or ecological vehicle.
    In Poland, DPD runs a network of 45 urban depots with on-site dressing rooms, allowing to return incorrectly sized clothes.
  • A Shop2Shop service developed throughout Europe.

 

3. Highly committed to sustainability

With more than 1.3 billion parcels delivered in 2019 and the development of e-commerce, DPDgroup is firmly committed to minimizing its environmental impact through DrivingChangeTM, its CSR programme. DPDgroup’s ambition is to achieve a 30% reduction in CO2 emissions per parcel by 2025 and to maintain its leadership on the voluntary carbon offset market in the CEP sector.

To reach this objective, DPDgroup has launched several sustainable initiatives since 2012 with a twofold strategy: make every parcel it delivers carbon neutral and offset any remaining emissions.

Among DPDgroup’s smart urban initiatives launched in 2019:

  • Chronopost France now operates 100% green deliveries in Paris, thanks to low-emission vehicles and urban depots. This initiative helps reduce 87% of their CO2 emissions. DPD France is on its way also to deliver Paris with low emission vehicles.
  • 139 electric vehicles deployed in the United-Kingdom, to form the largest UK green livery. The company’s green fleet and urban depots are in line with London’s Ultra Low Emission Zone standards.
  • Green deliveries are also operated in Dublin, Hamburg, Madrid, Tallinn and Warsaw.
  • A Group-wide air quality monitoring programme measures air quality with sensors on vans and Pickup points. Data are provided (for free) to cities & citizens.

As revealed in the 2019 DPDgroup e-shopper barometer[1] , one of the many emerging trends appears in the growing environmental awareness among the general population, through the appearance of eco-selective e-shoppers who seek responsible actions from companies.

 

4. Further expansion in Europe and beyond

Created in 1999, GeoPost has established the robust DPDgroup network over the past 20 years by gaining a strong foothold in a majority of countries. In 2019 GeoPost pursued its external growth through several acquisitions predominantly in Europe.

Reinforced capabilities in Europe

  • Majority stake acquisition (85%) in BRT – the Italian leader on the CEP market – in January 2020. BRT delivers more than 650 000 parcels per day, and recorded a €1.4 billion turnover in 2019.
  • Acquisition of Geis Parcel in the Czech Republic and Slovakia, strengthening DPDgroup’s presence in both countries.
  • DPD Netherlands opened the largest European hub in Eindhoven with a capacity of 50,000 parcels per hour. This eco-friendly hub generates a minimum carbon footprint.
  • Minority stake in TIPSA, Spanish operator.
  • Merging of our two companies in Portugal: SEUR Portugal and Chronopost now form DPD Portugal.

Trailblazer in Brazil

Jadlog, the Group’s subsidiary in Brazil recorded a strong growth of more than 47% in parcel services revenues year on year, riding the wave of a booming e-commerce market. Thanks to its dense franchisee & PUDO network, innovative offering and state of the art IT platform, Jadlog strengthened its recognition as a key player for its B2B and B2C clients.

Opening new activities in Asia

DPDgroup took a minority stake in Ninja Van in 2018. In 2019, the Group brought continuous support allowing Ninja Van to grow at breakneck pace and become one of the leading market players in its 6 active markets: Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam.

DPDgroup acquired a majority stake in Lenton, the Asian-based cross-border service provider. This confirms a close cooperation between the two operators and enables the DPD brand to be deployed in China.
This acquisition is a further step in the growing internationalisation of the Group with the ability to connect the Chinese market with the European DPDgroup network, leveraging future growth opportunities.

“As a leader in e-commerce and last-mile delivery, especially throughout Europe, DPDgroup’s majority stake acquisition in Lenton will help accelerate the development of innovative products and e-commerce solutions even more, while reinforcing the Group’s cross-border capabilities for our customers,” said Olivier Storch, Executive Vice President, COO Asia – Pacific – Americas.

About DPDgroup

DPDgroup combines innovative technology and local knowledge to provide a flexible and user-friendly service for both shippers and shoppers. With its industry-leading Predict service, DPDgroup is setting a new standard for convenience by keeping customers closely in touch with their delivery.

With 77,000 delivery experts and a network of more than 46,000 Pickup points, DPDgroup delivers 5.3 million parcels each day – 1.3 billion parcels per year – through the brands DPD, Chronopost, SEUR and BRT.

DPDgroup is the parcel delivery network of GeoPost, which posted sales of €7.8 billion in 2019. GeoPost is a holding company owned by Le Groupe La Poste.

 

[1] For more information about the e-shopper profiles and insight on future e-commerce trends, please visit our website at: https://www.dpd.com/group/en/expertise/e-shoppers-in-europe/

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