UK's IDS targets return to profit after Royal Mail beats expectations (updated)

Foodlink SA

18/05/2023 07:18

(Adds chairman comment, background on strikes, outlook)
       May 18 (Reuters) - Britain's Royal Mail posted an annual
adjusted operating loss of 419 million pounds ($528.82 million),
its parent International Distributions Services  IDSI.L  said on
Thursday, beating market expectations for the year marred by
postal strikes over pay.
    "So as we enter 2023-24, we have grounds for optimism. The
economic climate remains challenging, and Royal Mail faces the
task of rebuilding business from the damage caused by industrial
action," Chairman Keith Williams said in a statement.
    International Distributions Services (IDS) is targeting a
group adjusted operating profit in this financial year, said the
group, which is still looking for a replacement for Royal Mail
CEO Simon Thompson.
    A total of 18 days of strikes by Royal Mail postal workers
between August and December cost the parcels and postal company,
which serves thousands of businesses, more than 200 million
pounds.
    IDS, which includes Royal Mail UK and international
operations GLS, reported a group adjusted operating loss of 71
million pounds for the year ended March 26, compared with a
profit of 758 million pounds a year earlier. 
    Analysts on average had expected a loss of 114 million
pounds, according to a company-compiled consensus.
    Analysts on average had expected Royal Mail UK's adjusted
operating loss to come in at 449 million pounds for the year.
    
($1 = 0.7923 pounds)

 (Reporting by Yadarisa Shabong in Bengaluru; Editing by
Subhranshu Sahu)
 ((Yadarisa.Shabong@thomsonreuters.com; +91 9742735150;))