Parcel locker firm InPost has issued a cautionary note, revealing substantial losses in its UK operations during the critical Christmas period and projecting flat earnings for the current year. This disclosure comes as the company prepares for a monumental £6.7 billion takeover by a consortium spearheaded by delivery titan FedEx and private equity firm Advent.
UK Operations Face Financial Strain
InPost's UK division reported an underlying loss of 99.3 million Polish zlotys, equivalent to approximately £20.1 million, in the fourth quarter. This marks a dramatic reversal from the same period a year earlier, when the arm earned 100.1 million zlotys, or £20.3 million. The company attributed this downturn to strategic decisions aimed at prioritising service quality and maintaining capacity during the peak season.
InPost implemented measures such as capping parcel deliveries and pausing restructuring efforts in the UK to focus on service excellence over short-term cost optimisation. Additionally, integration and accounting costs stemming from its £106 million acquisition of UK parcel delivery group Yodel last year have further weighed on earnings. This acquisition is anticipated to reduce UK underlying earnings by half, to 98.8 million Polish zlotys, or £20 million, by 2025.
Group-Wide Performance and Projections
These pressures contributed to a 4 per cent decline in group-wide underlying earnings for the fourth quarter, which fell to 1.1 billion zlotys, or £220 million, worse than market expectations. Despite this quarterly dip, annual group earnings demonstrated resilience, rising by 12 per cent to 4.1 billion zlotys, or £830 million.
Looking ahead, InPost projects no growth in underlying earnings for 2026. The company cites lower expected profitability in Poland and the increasing share of the UK in total group results as key factors behind this flat outlook.
Record Volumes Amidst Challenges
Despite the financial headwinds, InPost achieved record parcel volumes in the UK, reaching 262.1 million, a figure significantly boosted by the Yodel deal. Across the wider group, volumes also hit a record high, surging by 25 per cent to 1.4 billion last year.
The impending takeover, agreed in February, values InPost at €7.8 billion, or £6.7 billion. Post-acquisition, the company will continue to operate under the InPost brand as a standalone entity, maintaining its headquarters in Poland with founder and chief executive Rafat Brzoska remaining at the helm.
Strategic Vision and Expansion Plans
Mr Brzoska emphasised that 2025 was a year of relentless acceleration for InPost, marked by record volumes and revenues, solidifying its leadership position across Europe. In the UK, following the integration of Yodel, the company is making decisive investments to build scale and transform the business.
This includes restructuring initiatives designed to improve efficiency, enhance service quality, and boost profitability over time. Concurrently, InPost is rapidly expanding its automated parcel machine network and reshaping consumer delivery habits. The group's sale is expected to be finalised in the second half of 2026, facilitating expansion in existing markets across France, Spain, Portugal, Italy, Benelux, and the UK, which stands as Europe's largest e-commerce market.
In the UK specifically, InPost aims to more than double its locker points to 30,000 from the current 14,000, alongside maintaining 5,500 pick-up and drop-off points. Founded in 1999 by Mr Brzoska, InPost now boasts a network of over 61,000 lockers and more than 33,000 pick-up and drop-off points across nine European countries, including Poland, the UK, France, Italy, Spain, Portugal, Belgium, the Netherlands, and Luxembourg.
