(This story has been corrected to show that the company’s results were ahead of, not below, market expectations in paragraph 1)
(Reuters) – Britain’s Royal Mail posted an annual adjusted operating loss of 419 million pounds ($528.82 million), its parent International Distributions Services said on Thursday, beating market expectations for the year marred by postal strikes over pay.
“So as we enter 2023-24, we have grounds for optimism. The economic climate remains challenging, and Royal Mail faces the task of rebuilding business from the damage caused by industrial action,” Chairman Keith Williams said in a statement.
International Distributions Services (IDS) is targeting a group adjusted operating profit in this financial year, said the group, which is still looking for a replacement for Royal Mail CEO Simon Thompson.
A total of 18 days of strikes by Royal Mail postal workers between August and December cost the parcels and postal company, which serves thousands of businesses, more than 200 million pounds.
IDS, which includes Royal Mail UK and international operations GLS, reported a group adjusted operating loss of 71 million pounds for the year ended March 26, compared with a profit of 758 million pounds a year earlier.
Analysts on average had expected a loss of 114 million pounds, according to a company-compiled consensus.
Analysts on average had expected Royal Mail UK’s adjusted operating loss to come in at 449 million pounds for the year.
($1 = 0.7923 pounds)
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Subhranshu Sahu)
