Omniva Group’s Q1 Results Fall Short of Expectations – Efficiency Improvements Needed
Omniva Group today published its financial results for the first quarter of 2025, which fell short of management expectations. Despite a significant increase in parcel volumes and revenue, losses from postal and periodical delivery services, coupled with faster-than-expected increases in operating costs, demand swift changes to prevent further losses.
In the first quarter of 2025, Omniva Group’s revenue grew by 11% year-on-year, reaching €35.5 million. Parcel services and delivery volumes across the Baltic countries rose by 17%, reflecting continued growth in e-commerce. Altogether, Omniva delivered over 11.6 million parcels both within the Baltics and internationally.
“Considering that the beginning of the year is traditionally the weakest quarter for the postal and parcel business due to seasonality, the parcel volumes and revenue figures are strong. Growth was particularly supported by the active marketing of international e-commerce giants in our markets, which further boosted parcel orders from Asia,” explained Omniva CEO Martti Kuldma.
The international transit business also saw strong growth – compared to Q1 2024, the volume of transit parcels increased by an impressive 84%. In total, Omniva handled 3.3 million transit shipments in the first quarter, generating €5.4 million in revenue. “While our international transit business is subject to external factors such as customs procedures and global freight trends, it allows us to diversify the Group’s revenue and risk base,” said M.Kuldma.
Providing the universal postal service and periodical delivery service in Estonia continues to be unprofitable for Omniva – the loss from the universal postal service in Q1 was €0.7 million, and the loss from periodical delivery amounted to €0.5 million. The main factor behind the loss in periodical delivery is early-morning home delivery, which is not cost-effective given rapidly declining volumes.
In addition to loss-making business areas, the Group’s profitability is negatively affected by intensifying competition in the parcel delivery market and faster-than-expected increases in operating expenses – particularly courier transportation costs in Estonia.
Although the quarter ended with a net profit of €3.2 million (compared to a €1 million loss in the same period in 2024), this was due to the sale of Omniva’s historic headquarters property on Pallasti Street in Tallinn. Excluding one-off profits, the Group’s normalised result for the first quarter is a net loss of €2 million – the same as in the previous year.
“The sale of the Pallasti office marks the beginning of a new asset structure for Omniva, where we aim to move away from owning land-based assets and instead invest the proceeds into solutions that ensure the Group’s long-term financial sustainability,” said M.Kuldma.
In the second and third quarters of this year, the management board’s key objective is stricter financial discipline – reducing overhead costs and improving operational efficiency. Planned measures include optimizing office work to reduce labour costs, improving courier routes and postal rounds, and streamlining the logistics network. “Our goal is profitability by the end of the year. This is the only way to ensure the company’s economic viability long-term, and also support Omniva’s privatization that the state is planning,” M.Kuldma confirmed.