Evri, Leeds delivery firm, ups revenue 15% to £1.7bn

Leeds-based Evri, one of the UK’s largest parcel delivery companies, said it delivered a “record year” in the 53 weeks to February 29, 2024 as total revenue rose 15.2% to more than £1.7 billion and parcel volumes grew 14.9% to more than 730 million.

Evri reported record adjusted EBITDA of £292 million, up 33.7%. Profit before tax more than doubled to £119 million, compared with £51 million in 2022-23.

New York private equity firm Apollo announced in July that Apollo-managed funds agreed with Advent International to acquire Evri. Financial terms were not disclosed but the deal was thought to be worth about £2.7 billion.

Evri reported £32 million of investment in customer service and operations in 2023-24, with significant further investment planned for 2024-25.

The firm has strategic partnerships with Amazon Prime, Post Office and Tesco Clubcard.

For the first half of its 2024-25 year, Evri has reported revenue of £865 million, up 10.6% “driven by a broad-based increase in parcel volumes.”

Evri said its “self-employed plus” (SE+) courier model is the UK’s only union backed courier initiative, and the scheme has attracted a stable backbone of couriers on SE+, who work regularly for the business on an on-going basis.

“This pioneering model provides paid holidays, guaranteed rates of pay, pension contributions, parental leave and additional flexible benefits,” said Evri.

“In addition, during 2023-24, Evri enhanced the support it provides to any new courier joining the business. This includes the introduction of new starter payments to supplement courier earnings during their first few weeks.”

Evri CEO Martijn de Lange said: “For 50 years we have been delivering parcels and we have never been as relevant, powering the ecommerce ambitions of record numbers of clients, marketplaces, SMEs and consumers.

“Evri had a record year – delivering more parcels than ever with over 99% arriving on time, a reflection of the ongoing dedication and hard work of our colleagues and couriers.

“The company’s best-ever year was underpinned by significant investment in our operations and customer service, as well as deepening our relationships with retailers and forging new partnerships.

“The growth of online marketplaces including value-led market entrants and the rising popularity of pre-loved fashion, which shoppers see as an affordable and sustainable option, have reshaped shopping habits.

“Our differentiated, flexible business model and focus on service means the business is well placed to take advantage of new consumer trends, such as these.

“This unique model together with the business’ track record of growth, and progress in executing our ambitious business plan were key factors that attracted Apollo Funds to acquire Evri in August. We are confident of further success under our new owner, who is committed to accelerating our growth strategy.

“We have been pleased to sustain the strong trading momentum into the current financial year, as we have continued to deliver double-digit revenue growth amid a more positive outlook for ecommerce in the UK and overseas in the short and long term.”

Apollo Partner Alex van Hoek said: “Evri has an innovative model, great technology and purpose-built infrastructure for reliable, lower emissions delivery in the fast-growing e-commerce market.

“Evri puts the customer first, and we are pleased to see this continue to come through in their results, whether measured by on-time parcel volumes, new strategic partnerships, or investments in operations.”