- The company achieved the set financial goals in all Baltic states
- The revenue growth was primarily driven by the increase of e-commerce and the demand for e-commerce fulfilment services
- The company set the record for the highest amount of parcels delivered in December 2020
Venipak, an international parcel delivery service, operating in all Baltic states (Lithuania, Latvia, and Estonia), increased its revenue by 22% and reached 39M EUR in fiscal year 2020.
Having achieved all last year’s financial goals, the company generated the majority of the revenue in Lithuania, and achieved a 17% growth. Venipak also saw a 28% revenue growth in Latvia and a 36% growth in Estonia.
In comparison, the forecasts in April 2020 indicated that the annual growth of the global parcel delivery market would reach 0.7% only. As a result of pandemic and widespread lockdowns, the global economic deceleration was anticipated to incur significant damages to this sector.
However, despite the global stagnation of the economy and the decrease of the B2B (business-to-business) sector due to the lockdown, the needs of the B2C (business-to-consumer) sector increased significantly, therefore ensuring stable growth of the company’s revenue.
“Due to the lockdown restrictions and the instability in the market at the beginning of the year, we had to respond swiftly to significantly reduced needs for B2B parcel delivery services. Therefore, to ensure the business sustainability and preserve the jobs, in March 2020 Venipak used the state support offered for businesses—the opportunity to defer tax payments. Nevertheless, the rapid growth of e-commerce along with timely and successful strategy changes allowed us to ensure stable operations of the business, therefore we are repaying our tax obligations to the state,” Justas Šablinskas, CEO at Venipak, said.
Venipak received the majority of revenue—80%—from the last mile delivery services in Lithuania, Latvia, and Estonia. The remaining revenue was generated through international parcel delivery and a significant increase in the demand for e-commerce fulfilment services.
Similar to revenue, last year Venipak also saw a surge in the number of parcels delivered—from 5.5M parcels in 2019 to 7M parcels in 2020 (indicating a 26.8% growth). Last December was also a record-breaking month for the company: the couriers delivered over 767K parcels throughout all Baltic states. Domestic residential parcel deliveries (B2C) amounted to as many as 60% of all company’s orders during the Christmas time, even though usually these orders constitute around 40% of parcels.
“We were not the only company to face the sudden increase in the demand for domestic residential parcel delivery—the entire world was not ready for such unprecedented changes. Both the pandemic and the subsequent lockdowns altered business and life, making it clear that couriers play an undeniably important role under current circumstances,” Justas Šablinskas maintained.
Venipak has already announced its plans to continue with an active expansion of the contactless parcel locker network in the Baltic states in 2021. For instance, Venipak Latvia has scheduled to install a network of 200 parcel lockers by July, and the Group has intentions to introduce the parcel lockers to the Estonian market as well. At the same time, the group of companies is planning to increase the revenue up to 50M EUR throughout the year, and allocate 3M EUR to the installation of parcel lockers.