Yodel H1 2022 trading statement
Summary – Strong volume and revenue growth since the start of the Pandemic in the UK
Financial highlights - Overall increase in volumes in H1 2022 (July - December 2021) of 22%, compared to the same time period in 2020. However, volumes were down 1.6% compared to H1 2021, when the UK was subject to Covid-19 restrictions - Strong Christmas trading performance in the 6 weeks to December 24, with volume up 34.9%, compared to the same period in 2020. Yodel saw triple digit growth in Fresh Food & Flowers and double-digit growth across all other categories, including Alcohol, Retail, Garden and Pet Foods - Significant cost increases in fuel, labour and utility costs which make for a challenging operating environment, in line with many other logistics companies.
Strategic and operational highlights
Investment in operations - H1 2022 has seen major investment in Yodel’s operations, with the £1m integration of the state-of-the-art Merlin2 parcel sortation system at its Shaw sorting centre. - £13.25m investment in Yodel’s fleet in H1 2022, adding 250 brand new trailers and 100 tractor units to its network. - Continued development of Yodel’s Hand-Held Terminal Transformation Programme and rolled out new hands-free devices along with a Digital App for its national sortation centres and depots - Further upgrades to its Driver App to include image capture for all deliveries to improve service to clients and customers - Continued growth of our C2C service by 50% YOY - New business wins including I Saw It First, Homebase and Virgin Wines.
Customer service - Further investment into Yodel’s customer service operations in H1 FY22, which has led to significant reductions in contact per parcel. - Update to its customer app, offering customers greater ability to personalise their delivery experience via a dedicated ‘My Account’ section – expand on My Account as investment piece to allow customers to store default delivery preferences
Awards and people - Yodel created a total of 4,311 new roles across its UK network in H1 2022 and continues to invest in its workforce - Multiple award wins achieved, including ‘Best Outsourcing’ at the CXA Awards, four National Courier Awards and ‘Best Turnaround’ at the Northern Finance Director of the Year awards - Yodel’s Chief Commercial Officer, Sam Holden, won Northern Business Woman of the Year at the National Business Women's Awards 2021 - Yodel’s first Supplier Code of Ethics and the 2022 CSR Supplier awards launched in December 2022.
Mike Hancox, CEO of Yodel, commented: “We have recorded a strong performance in H1 FY22 and, thanks to our people’s resilience and the business’ flexibility, we have achieved significant growth since the start of the pandemic in 2020.
“The first half of FY22 has demonstrated that despite ongoing uncertainty caused by Covid-19, demand for ecommerce and doorstep delivery services remains as strong as ever and that Yodel is perfectly positioned, and prepared, to cater to changing customer needs.
“In the coming year, we expect to see the greater integration of technology into delivery service business models to improve customer experience across the industry, increasing the efficiency of supply chains to handle larger volumes, as demand for online shopping continues to grow.”