This year, international parcel delivery company Venipak Group plans to achieve a turnover of EUR 120 million, nearly double the increase of EUR 56 million in 2021 (a 44% growth against 2020). A profit of EUR 5.6 million was made last year, rising 25% from 2020, and is expected to reach EUR 12 million this year.
Last year, the turnover in Latvia was EUR 16 million, which is a growth of 55% compared to 2020. The turnover in Estonia was EUR 8 million, which is a 44% increase year-on-year.
The main reason behind the growth in both turnover and profit is the air freight service offered out of Riga Airport, developing flight routes, and successfully engaging cooperation partners in the delivery of cargo, both to their destinations and back to the Baltic states. Since the launch of the air freight service, it has drawn great interest, mostly from the manufacturing sector – electronics, medical devices, etc. The average delivery period is 2-3 business days. Venipak began cooperation with Riga Airport on 18 September 2021, offering business customers goods delivery from Riga to Hong Kong.
Considering the continued growth of e-commerce and the rising popularity of online shopping among consumers, Venipak expects a further increase in orders – by some 45% in 2022 compared to previous years and even double the increase in 2023.
“Currently, it is impossible to predict how long the pandemic will last. Also, some consumers who have gotten into the habit of buying things online are unlikely to return to the time-consuming practice of going to physical shops, so we expect a further rise in e-commerce, which means there will also be rising demand for courier services and parcel lockers,” says Venipak Board Chairperson Justas Šablinskas. “Sometimes it’s challenging to maintain a high-quality service and a sufficient number of personnel, so future investments will be aimed at automating the processes as much as possible”, he added.