In 2021, Venipak, an international parcel company established using Lithuanian capital, finished the year with double-digit growth. An even bigger growth spurt is forecast for this year, which will largely be driven by growing market demand for air freight and e-fulfilment services.
In 2021, the turnover of the parcel company, which operates in all the Baltic countries and has recently expanded part of its services to Poland, amounted to €56 million, which was 44% higher than in 2020. The successful financial year was determined by growth in all areas of services: transportation of parcels by land grew by 28%; and the demand for e-fulfilment service increased by 75%. The air freight service, which commenced in the third quarter of the year, also attracted business interest and increased the company’s revenue by another €2.4 million.
Venipak CEO Justas Šablinskas says, “2021 marked the beginning of Venipak’s renewal. We changed and expanded our range of services, and we modernised the brand. The pandemic situation and challenges in the labour market obliged us to look for non-standard solutions for both business and personnel management. We offered contactless post-dispatch stations to the market, and last year our Riga–Hong Kong–Riga air cargo service was a real hit. This year we plan to expand outside the Baltic countries, and we will pay great attention to ensuring high-quality services”.
The company forecasts a turnover of €120 million for 2022 and a profit of €12 million before tax. Air freight will remain a priority for expansion. It is planned to offer new directions for the business later this year. According to the International Air Transport Association, air freight will grow by at least 13% worldwide.
The company plans to direct a large part of its investment into the growth of e-fulfilment services in the Baltic countries and abroad, e.g. Poland, Germany, and the Netherlands. According to Justas Šablinskas, the e-commerce segment will expand despite the pandemic situation, so the need to outsource part of the work will grow. This will allow e-commerce businesses to devote their own resources to development or business optimisation, while outsourcing parcel preparation, warehousing, delivery, and other work to logistics companies.
Venipak currently operates a network of 450 contactless post-dispatch stations in Lithuania and Latvia, which it plans to expand to Estonia this year.