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HomeEstoniaEstonia's Omniva reports losses in 2023 - net loss 1.3 million euros

Estonia’s Omniva reports losses in 2023 – net loss 1.3 million euros

Estonian state-owned postal service and logistics company Omniva Group’s total sales revenue amounted to 131.7 million euros in 2023, which is a 7 percent increase compared to the previous year, and while the group’s net profit before the income tax was positive, the inclusion of the income tax, resulting from over six million euros of paid dividends throughout the year, amounted to a net loss of 1.3 million euros.

Sixty per cent of the sales revenue, or 79.1 million euros, was generated from package service profits; 21 percent, or 28.1 million euros, from postage service profits, including around 10 percent, or 12.6 million euros, from universal postage service profits; and 16 percent, or 21.2 million euros, from international transit profits. Estonian clients accounted for 41 percent of the sales revenue. Following them were Lithuania with 16 percent, Latvia with 11 percent, and other countries with a combined 22 percent.

The main expenses came from providing traditional postage services. A significant negative impact on business revenue was also generated by expenses related to traditional post and daily newspaper delivery services. To cover losses from traditional postage services, Omniva is making an effort to expand the profitable package services business, which it currently offers in the Baltic, and international transit, where possible.

“Revenue from the holiday season was lower than expected, as indicated in the sales report for the fourth quarter,” said Omniva chairman of the board Mart Magi.

“Purchases from e-commerce platforms were more equally distributed throughout the year than they were last year, and the sharp increase in sales before Christmas was also smaller than last year. Omniva’s activities are increasingly influenced by strong competitors, which is why we have to increase our efforts to be the preferred partner for our clients within a competitive price range. To achieve this, we have to maintain a high service quality while optimizing cost-efficiency. We have implemented changes in the company to encompass the entire Baltic region. This allows us to approach the entire domestic market with shared values and carry out necessary changes with reduced costs in both time and money,” he said.

In the fourth quarter, Omniva received several significant recognitions and awards. In the fourth strategy conference of the Universal Postal Union (UPU), Estonia and Omniva were recognized as innovators in the European and Central-Asian region. The company also received significant acknowledgement with a high grade from the International Postal Corporation (ICP), known as the Certification of Excellence. Additionally, in the Parcel+Post Expo held in Amsterdam, Omniva was named Service Provider of the Year.

In the fourth quarter, Omniva opened seven renovated post offices in Estonia. 80 new parcel machines were set up in the Baltics.

In the fourth quarter, Omniva invested over 500,000 euros in new sorting infrastructure at the Riga terminal, improving the company’s sorting capabilities in Latvia by 30 percent. The new sorting line makes it possible to process packages quicker and more efficiently, allowing for the sorting of up to 6,000 packages per hour. Construction works on a new sorting center in Kaunas continued, and it is set to start operations in the third quarter of 2024.

Omniva also signed a long-term collaboration contract with the Estonian VOOL startup company to procure 300 electric car chargers within five years. By the end of 2023, the first 50 chargers were installed in Tallinn, Tartu, Kuressaare and Rakvere. Currently, a little less than 10 percent of the Omniva fleet consists of electric vehicles. In the coming years, there are plans to actively increase the number of electric vehicles. Other major activities include route optimization and the implementation of other sustainable solutions.

Along with the Bank of Estonia, Omniva organized the million coin collection campaign at Jarve post office in Tallinn and Kvartal post office in Tartu. The campaign allowed for people to exchange small-value euro coins for larger currency denominations.

The consolidated fourth-quarter interim report for 2023 has been published in Estonian on Omniva’s website at https://www.omnivagroup.com/et/meist/aruanded/ .

Omniva, or AS Eesti Post, belongs to the Republic of Estonia and its main field of activity includes the provision of logistics services, and digital and international transit services. SIA Omniva’s and UAB Omniva LT’s main field of activity includes the provision of package and delivery services within Latvia and Lithuania, respectively. UAB Omniva LT Sorting has started construction works on a new logistics centre in Kaunas. OU Picapac’s main fields of activity include the development of technological solutions for parcel machines and the provision of a personal parcel machine service. OU Finbite’s main field of activity is the provision of information business services.

Source: BNS

(Reproduction of BNS information in mass media and other websites without written consent of BNS is prohibited.)

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