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Hermes revenue increases by 7% for FY2016

Hamburg-based parcel delivery firm Hermes closed the 2016 financial year on a positive note after gaining market share in its parcel and bulky goods segment.

Hermes grew its revenue in the 2016 financial year by more than 7% to €2.6bn (US$2.8bn) year-on-year. This was largely attributed to the group’s European parcel business which, benefiting from flourishing global online retailing, transported approximately 640 million parcels to private customers, a rise of 10% year-on-year.

The integration of the French parcel shipper Mondial Relay and the acquisition of two-man handling specialist Girard Agediss also enabled Hermes to improve its competitive position in key European markets. Worldwide, Hermes currently employs 12,618 people, with 8,500 full-time employees in Germany alone.

Donald Pilz, CEO of Hermes Europe, said, “We are delighted we closed 2016 on a positive note. This has once again helped us consolidate our strong position in a highly dynamic and, in many respects, challenging market. As the logistics and service partner for many successful online shops and multichannel retailers at home and abroad, Hermes is continuing to participate in the ongoing boom in global online retailing. With an eye on further growth potential, in 2017 we will be continuing the on-going modernization and expansion of our logistics infrastructure and investing in new technologies. On top of this, we are expanding in new customer-centric services and are targeting the expansion of our successful commitment in promising business segments such as parcel and two-man handling, not least through the integration of French activities.”

The financial results of Mondial Relay will be fully consolidated for the first time in 2017. Headquartered in Lille, the company currently operates four hubs and 24 depots in France and also operates in Belgium, Luxembourg, Spain and Portugal. With its 600 employees, Mondial Relay processed 57 million consignments in 2016.

For the German domestic market, Hermes is planning further infrastructure developments across the whole consumer parcel market (B2C and C2C). Three new Hermes logistics centers will be opened in Bad Rappenau, Mainz and Berlin in the course of 2017. By the end of 2019, a total of nine state-of-the-art logistics centers are to be built, all designed in line with strict environmental protection guidelines.

In addition, Hermes is investing in modernizing and electrifying its fleet of vehicles and has agreed a comprehensive strategic partnership with Mercedes-Benz. This year, the Group is looking to push ahead with the deployment of Euro 6 delivery vans, including them in its own fleets and those of its contracting partners. From 2018, Hermes companies are looking to test the deployment of electric vehicles in operations, initially in Stuttgart and Hamburg. By 2020, Hermes Germany is aiming to deploy 1,500 Mercedes-Benz Vito and Sprinter vehicles in conurbation areas around the whole country.

April 21, 2017

Written by Daniel Symonds

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