IDS stated that it saw a net cost of strike action of almost ?200 million and an adjusted operating loss of ?295 million.

International Distributions Services PLC, which owns Royal Mail, experienced a 2% increase in share price today as it provided information on the impact of the recent strike action on the company.

The business stated in a trading statement that the nine-month period ending in December 2022 saw a net cost of strike action of almost £200 million and an adjusted operating loss of £295 million.

Due to strict cost management and strike contingency plans, IDS stated that it continues to anticipate an adjusted operating loss for Royal Mail at or near the middle of the current £350 million to £450 million forecast range.

However, this was predicated on there being no further strike-related days missed.

In the nine-month period, revenue decreased by 12.8% year over year, with the performance being driven by a return to structural letter drop, poorer retail trends, the effects of industrial interruption (18 strike days so far this year), and reduced test kit volumes.

With volumes down 20%, overall letter and parcel income decreased by 17.8% and 6.1%, respectively, year over year.

In order to accomplish the necessary 10,000 job cutbacks by August 2023, the business indicated it anticipates making "much fewer" voluntary redundancies than the 5,000–6,000 announced in October.

IDS said that over the first nine months of its GLS operation, volume decreased 2% year over year but revenues increased 9.7% in sterling terms.

The nine-month adjusted operating margin of 7.5% was 100 basis points lower than in the same period last year.

The firm for GLS reduced its outlook on adjusted operating profit to a range of €380 million to €400 million (formerly €370 million to €410 million), while maintaining its guidance for revenue increase year over year in the high single-digit percentage range.

(Investing.com, Reuters.com)