Omniva 2016: growth in the Baltic region and preparations for the continued expansion of Omniva’s parcel business
Omniva 2016: growth in the Baltic region and preparations for the continued expansion of Omniva’s parcel business
In 2016, the parcel business and information logistics business of Omniva Group grew in the Baltic region, the domestic market Omniva. Omniva’s international business also continued its rapid growth. Revenues from Omniva’s postal services provided on the Estonian market continued to fall.
In 2016, the total commercial revenue of the Group amounted to 95.8 million euros, a 27% increase compared to the previous year. This growth was mainly influenced by the growth in the volume of international e-commerce and logistics services of Omniva. The net profit of the Group in 2016 was 1,166,000 euros, a 20% decrease compared to the previous year.
Rapid growth on the domestic market and in international business
In the Baltic region, the domestic market of Omniva, the Group’s sales revenue from parcel business services increased by 17% compared to the previous year. The increase in parcel business was especially notable in Latvia, where the business revenues from parcel services grew by 90% compared to the previous year. In Lithuania, Omniva’s revenues from parcel business increased by 30% compared to the previous year.
The parcel machine service continued to show rapid growth in all three Baltic States, increasing by 42%. The service grew by 25% in Estonia, 92% in Latvia, and 90% in Lithuania. Altogether, Omniva delivered 40% more parcels to its customers via parcel machines in 2016 than it did in 2015.
Owing to the popularity of parcel machines as well as to the rapid growth of e-commerce, Omniva expanded its parcel machine network by a total of 35% in the Baltic region in 2016, including an increase of 54% in Latvia and 49% in Lithuania. It is the most extensive parcel machine network, which covers the entire Baltic area. “We plan to continue the expansion of our parcel machine network in 2017. We can use parcel machines of different types and sizes to expand to regions where parcel traffic is not yet that dense,” said Kärmas.
International business is Omniva’s fastest growing area of business, which increased by 107% in revenues in 2016. “Although the twofold growth of the area is a remarkable result, I am confident that the growth in international e-commerce will not slow down. Instead, the upward trend will continue,” said Kärmas.
In 2016, around 40 million shipments were delivered to around 100 destination countries. Fifty new positions were created in Omniva’s distribution centre in Tallinn in connection with the rapid increase in the volume of this area of business. Omniva’s international business primarily involves the logistics of parcels sent as part of Chinese e-commerce.
Revenues from the information logistics business increased by 35% compared to 2015. The expansion of Omniva’s operations in Latvia and Lithuania as well as the increase in the volumes in Estonia were important steps in this area of business. An important step in cross-border cooperation was the conclusion of a strategic partnership with Pagero, the leading operator of e-invoices in Europe, which enables Omniva to provide a broad international reach in e-invoicing to its Baltic customers.
The area of postal services continues to shrink
Omniva’s revenues from postal services, which the company provides only in Estonia, continue to decline. Omniva’s revenues from postal services decreased by 3% compared to the previous year. A continued decrease in the volume of letter services was the cause of this decline. “The volume of letter services decreases by 10–15% each year. In 2016, the volume of domestic letters decreased by 12%, deliveries of advertisements and periodicals by 2% and 3%, respectively,” said Kärmas.
Compared to 2015, the aggregate results of postal services were also influenced by the Estonian parliamentary elections held in 2015. Compared to those results, Omniva’s revenues from direct mail services were also smaller in 2016.
Investments in an information system and logistics centre of the new generation
The Group’s investments increased by 20% compared to 2015, amounting to 7,726,000 euros.
“In 2016, the Group invested in the installation of new parcel machines in the Baltic region, in the establishment of a new logistics centre, and in the development of a new logistics information system,” said Kärmas. “The main investments were made for the purpose of major projects, which will ensure more efficient business processes and a more customer-friendly service in the future.”
In 2016, considering primarily the needs of the parcel business, Omniva started the development of a new information system, as well as preparations for replacing its current information system in the autumn of 2017. “The new information system allows us to create new solutions that focus on the customer, as well as to modernise our existing services,” said Kärmas.
In 2016, Omniva also started building the most advanced logistics centre in the Baltic area in order to handle the rapidly growing volumes of parcel business. “We took account of the growth forecasts for the next ten years regarding the volume of parcels. This will ensure that the new logistics centre will be able to handle significantly larger volumes. In addition to the new building, we will also invest in a state-of-the-art sorting technology,” said Kärmas. The future logistics centre is located in the vicinity of Tallinn, near the airport and important traffic intersections. It will be completed in the autumn of 2018.
The Omniva Group mainly operates in the provision of postal, logistics and information logistics services, as well as the management of e-invoices. In addition to AS Eesti Post, the parent company, the Group includes subsidiaries and related companies. The principal activity of SIA Omniva and UAB Omniva LT is the provision of parcel machine and courier services on the Latvian and Lithuanian markets. AS Maksekeskus operates in the provision of payment solutions to e-commerce companies in the Baltic region. OÜ Post11 offers international logistics solutions for delivering goods all across the world.
In 2016, the Group employed an average of 2,244 employees in the Baltic region. The turnover of the Group amounted to 95.8 million euros in 2016.
News list
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29.02.2024Omniva Group’s total sales revenue amounted to 131.7 million euros in 2023, which is a 7% increase compared to the previous year.
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21.02.2024As of this week, a new price list is in force for the personal postal service of Omniva, which means that anyone living outside major cities can order a courier to their home or work free of charge to use a range of Omniva services and buy philatelic products.
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10.01.2024Omniva LT Sorting, a subsidiary of Estonian Post AS, will open a new modern automated logistics center in Kaunas in the second half of 2024. The construction of the new center is financed with a green loan of 27 million euros from SEB Bank AS.
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10.01.2024Due to air traffic restrictions imposed in response to the hostilities, Omniva was temporarily unable to deliver shipments to Israel. However, the traffic has now resumed, and parcels can once again be sent to Israel.
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13.12.2023Various schemes continue to circulate where people receive fraudulent messages and emails claiming to be from Omniva.
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04.12.2023Thanks to the couriers of Omniva, private customers in Estonia can now also send large, XXL-sized shipments.
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01.12.2023From January 1, 2024, Estonia will apply a standard VAT rate of 22% instead of the current 20%. As a result of the amendment, a new price list of parcel services for private customers will enter into force on 1 January 2024.
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07.11.2023Holger Winklbauer, the Chairman of the International Post Corporation (IPC), presented Omniva with the Certificate of Excellence in quality in Tallinn.
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01.11.2023The start of November sees the start of a busy festive period at Omniva, as people start preparing for Christmas.
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31.10.2023The sales revenue of Omniva group for the first nine months of 2023 totalled 94.7 million euros, which is almost 10% more than in the same period last year.
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27.09.2023In a joint campaign by Eesti Pank and Omniva, more than one million coins are likely to have been returned by Wednesday evening.
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19.09.2023Eesti Pank and Omniva launched a campaign to collect one million coins at the Järve post office in Tallinn and the Kvartal post office in Tartu. During the project, people can exchange their accumulated euro coins.
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13.09.2023The personal parcel boxes of Parcelsea, where parcels can be left by all courier companies, grocery stores that deliver to home, and private persons, will be called Picapac.
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05.09.2023As of September 5th, Kastytis Valantinas from Lithuania starts working as the member of the management board and Chief Operating Officer of Omniva.
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31.08.2023The sales revenue of the Omniva group in the first half of the year grew by 5 per cent and the parcel revenue by 11 per cent.
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21.08.2023
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01.08.2023
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23.05.2023With the transaction, Omniva will acquire 700 smart parcel boxes.
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22.05.2023
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19.05.2023
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10.05.2023Omniva started working with the Norwegian company Paxster AS to test the suitability of environment-friendly electric vehicles for mail delivery.
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03.05.2023For security reasons, as of 5 June it will not be possible to create a new account or log in to an existing account with a username and password in the Omniva self-service.
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29.03.2023Omniva and Ukrposhta renewed the partnership agreement to strengthen and grow cooperation.
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27.03.2023The postal and logistics company Omniva has announced a procurement to expand its logistics centre.
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28.02.20232022 was a year of challenges, investment, and rapid development for Omniva, both in the domestic market of the Baltics and internationally.
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07.02.2023Omniva and Asendia, a joint enterprise of the national postal service companies of France (La Poste) and Switzerland (Swiss Post), concluded partnership agreement to help online retailers expand their sales on established and emerging markets.
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05.12.2022In December and at the beginning of the new year, Omniva will open eight post offices of the future, where customers will have everything they need in terms of e-commerce and postal services.
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10.11.2022Omniva’s 1,000th parcel machine in the Baltics was opened yesterday in Vilnius.
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31.10.2022The financial results of the Omniva Group in nine months were below the results of 2021.
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21.10.2022Omniva is investing in its network and this year and next year a total of 267 parcel machines will be replaced and installed across the Baltics.
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18.10.2022On 18–20 October, Omniva will be attending the Parcel+Post Expo in Frankfurt, Germany, where leading companies from the e-commerce logistics and postal industry from around the world will meet.
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12.10.2022Starting from September, Omniva provides a return service for goods to merchants for their physical and online stores in all Baltic countries.
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09.10.2022Omniva was awarded the title of ‘Rising Star in Postal Development’ by the Universal Postal Union.
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30.09.2022From Monday, October 3 you may submit an application at an Omniva post office to subscribe to or opt out of the universal electricity service of Eesti Energia.
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28.09.2022In the recently published BRAND CAPITAL research of the most loved brands in the Baltics, Omniva was valued as the fastest growing and among the three most valued brands.
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01.09.2022
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26.08.2022From 1 September, sending a humanitarian aid parcel to Ukraine from a private person to a private person will cost 90 cents per kilogramme.
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02.08.2022The new development will apply to customers in all three Baltic states.
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27.07.2022Residents of Kihnu and Ruhnu will now be able to order their e-shop purchases to the island, as Omniva will start offering a virtual parcel delivery service from 1 August.
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21.07.2022The scam letters are designed to steal your identity or gain access your bank details and money.
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04.07.2022Omniva, which operates the largest parcel machine network in the Baltics, will invest over 40 million euros in building the most modern parcel sorting centre of the region in the Kaunas Free Economic Zone.
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01.07.2022Today, Omniva and other shareholders finalised the sale of Maksekeskus to Luminor Bank, a new strategic investor.
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20.06.2022Omniva has Upside-down Christmas campaign, lasting until 26 June.
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17.06.2022Omniva, the Trade Union PRO (PRO), and the Estonian Transport and Road Workers’ Trade Union (ETTA) have entered into an agreement, pursuant to which on 1 July, the wages of more than 800 primary-level workers will increase.
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17.06.2022Omniva has installed a new parcel machine in Kudjape.
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16.06.2022Omniva has announced a procurement to find a partner to renovate its post offices.
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16.05.2022
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12.05.2022Omniva will expand its vehicle fleet and introduce electric cargo bikes by Vok Bikes on a larger scale. The first five bikes have already arrived and are ready to deliver parcels.
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11.05.2022As a new opportunity, when you make a purchase from AliExpress, you have the opportunity to immediately select the nearest Omniva parcel machine to receive your goods.
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02.05.2022The Omniva Group’s turnover and profit for the first three months of this year fell short of expectations. The result was affected by the start of the war in Ukraine as well as rising energy and fuel prices.
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