Parcel delivery giant DPD is targeting the expansion of its international services to turn around its falling turnover which has decreased by £100m since the start of 2022.
The group, which is owned by France’s La Poste, said it is forecasting a return to sales growth by the end of 2024 after setting its sights on “reclaiming the position as the leading cross-border delivery experts”.
DPD’s aim has been included in newly-filed accounts with Companies House which show its turnover decreased from £1.493bn to £1.474bn in 2023.
The group’s turnover had stood at £1.572bn at 2 January, 2022. That total was an increase from the £1.488bn it posted for the 12 months to 3 January, 2021.
The new results for DPD, which is headquartered in Smethwick in the West Midlands, also show its pre-tax profit declined from £299.5m to £262.8m in 2023.
DPD battles cost-of-living challenges
A statement signed off by the board said: “The company had a successful year meeting stakeholder expectations, delivering strong revenues and volumes and maintaining profits and service levels.
“It continues to offer a full range of domestic and international services, including deliveries to businesses, consumers and to DPD pick up shops.
“The company’s performance was achieved against the backdrop of the cost-of-living crisis which affected customer demand for both domestic and international services and placed inflationary pressure upon both employee and supplier costs.
“Although the UK market place is highly competitive, the company continued to invest in infrastructure and personnel to ensure it remains the leading sustainable parcel delivery company in the UK, delivering the best service that money can buy.
“The company’s operational excellence and commitment to customer service throughout the period enabled it to retain its core customers, while also remaining resilient in the face of challenges presented in the current climate.”
Group wants to reclaim top spot
DPD added: “The company ended the period in a strong financial position and the board believes that this position, coupled with the strength of its parent, La Poste, puts it in a market leading position for future development.
“Furthermore, the company has already implemented a number of initiatives across 2024 that specifically target both revenue and parcel growth, with the company forecasting revenue to surpass the levels achieved in 2023.
“A large proportion of this growth is based on fully leveraging international services – simplifying and streamlining exporting processes, expanding and repositioning the portfolio of international services and reclaiming the position as the leading cross-border delivery experts.”