The growth was mostly thanks to the rapid development of e-commerce, which increased the revenue of Omniva’s international business, as well as of parcel services provided in its home market, the Baltic countries.
In the first half-year of 2017, the group’s total commercial revenue was 51.8 million euros, which was 25% more than in the same period last year. Omniva has shown growth of this magnitude for several quarters in a row now.
“Continuously and rapidly growing is more characteristic of start-ups and small businesses, so for a company with a turnover of more than 100 million euros, this is truly remarkable,” said Joona Saluveer, Chairman of the Management Board of Omniva. “Omniva is a strong and growing group that has made the right decisions regarding expansion, found new business areas, and managed to make a profit in areas with decreasing volumes.”
Omniva group consists of four major business areas: postal services, parcels business, international business, and information logistics business. In the first half-year, all these areas were able to grow.
International business: still the most rapid growth
International business continued to be the area with the most rapid growth in the Omniva group in the first half-year of 2017 – 76% compared to the same period last year. The main focus of international business is the logistics of parcels from Chinese e-commerce to everywhere in the world.
“The growth of global e-commerce is characterised by an estimation by Jack Ma, founder of Alibaba, according to which China will be sending more than one billion parcels a day in 7–8 years, compared to the current 80 million parcels,” said Saluveer. “This means one parcel per week for every person in the world – and Omniva plans to be a part of this business.”
Parcels Business: growth in the entire Baltic region
The group’s revenue from the parcels business grew by 14% in the home market, the Baltic region compared to the same period last year. The Parcels Business had an especially significant increase in Latvia – 65%. In Lithuania, the revenue from the parcels business grew by 25%.
“The expansion of Omniva to Latvia and Lithuania and addressing the entire Baltic region as its home market has been the right decision,” added Saluveer. “More and more customers want to receive a complete solution for parcel services in the Baltic countries and Omniva is able to successfully provide it.”
The biggest network of parcel machines in the Baltic region also helped increase the revenue of the Parcels Business Unit. As the demand for parcel machines is growing, Omniva plans to expand its network of parcel machines in Estonia, Latvia, and Lithuania this year as well.
Postal services: decline in traditional services, increase in revenue from new solutions
Omniva only provides traditional postal services in Estonia and the revenue from traditional national postal services continues to decrease. Total revenue from postal services in the first half-year of 2017 increased by 1% compared to the same period last year, and this was thanks to finding new segments and solutions beyond the traditional postal services.
“The growth in revenue from postal services has mainly resulted from finding new international clients and providing new solutions,” said Saluveer. “There has also been some growth in the revenue from direct mail, but the national letter service continues to operate at a loss in terms of both volumes and revenue.”
Saluveer emphasised that Omniva focuses on providing the universal postal service throughout Estonia and the company is constantly looking for new opportunities in the conditions of changing demand for doing this in a modern way that is as convenient for the customers as possible.
“People’s consumption patterns, as well as the way they use the services have changed, which means that post offices are increasingly becoming places for receiving and sending parcels, as well as for advising customers on the use of different services,” said Saluveer.
The growth of the Information Logistics Business is supported by the spread of e-invoices
The revenue of the Information Logistics Business grew by 35% compared to the first half-year of 2016. The growth opportunities of the Information Logistics Business are supported by the spread of e-invoices in the Baltic region and throughout Europe.
“The Information Logistics Business is increasingly focusing on growing in Latvia and Lithuania and the first results were already seen in the first half-year,” said Saluveer. “We certainly see potential for pan-European operation, which is why Omniva has entered into a strategic partnership agreement with Pagero, Europe’s leading operator in e-invoices.”
In the first half-year, the group primarily invested in information technology, while continuing to develop a new information system for logistics, and made preparations for the establishment of a new logistics centre.
AS Eesti Post, which operates under the brand name of Omniva, is an international group that offers postal, logistics, and information logistics services. AS Eesti Post, the parent company of the group, provides postal, logistics, information logistics, and e-invoicing services (Invoice Centre of Omniva). SIA Omniva and UAB Omniva LT provide parcel machine and courier services on the Latvian and Lithuanian markets. AS Maksekeskus operates in the provision of payment solutions to e-commerce companies in the Baltic region. Post11 provides online traders with complete international logistics solutions for delivering goods all over the world.