Royal Mail to slash costs and lift prices
Royal Mail is planning to slash costs and lift prices after being hit by rising inflation, as the postal operator misses City forecasts.
Royal Mail reported that pre-tax profits fell 8.8% in the last year to £662m in the year to 27 March, as its parcels business normalised as pandemic restrictions were eased, and the boom in online shopping slowed. Adjusted profits rose 8%, though, to £758m.
Revenues fell 1.6% year on year, with domestic parcel volumes dropping 7% despite growth in deliveries of Covid-19 test kits.
Non-executive chair Keith Williams says Royal Mail now faces ‘clear headwinds’, such as weakening GDP and growing inflationary pressures, which it plans to address through price increases and growth initiatives.
Royal Mail has already already increased domestic prices of our letter services by an average of 7%, and parcel prices by an average of 4%, in addition to the fuel…
