Shares in Royal Mail owner International Distributions Services PLC (LSE:IDS) climbed as investors read across to encouraging results from a rival.
Deutsche Post DHL said it now expects to produce record results this year, driven by higher prices for international freight and online shopping trends having “settled at a structurally higher level compared to pre-pandemic levels”.
Sales at the German-listed logistics group jumped 20% year-on-year to €24bn in the past quarter, while underlying profits (EBIT) rose 15% to €2bn.
For the full year the company now expects EBIT of €8.4bn, lifted from the previous guidance of €8bn.
“The first three quarters of the year were the most successful in our company’s history,” said chief executive Frank Appel.
“Even if global growth is losing momentum, we are well on track to achieve the best result ever,” he added.
International freight has been key, with revenue and EBIT “again increased significantly due to ongoing high freight rates”, helped by the ongoing strength of online shopping and parcel shipments.
Deutsche Post shares fell slightly, but those in Royal Mail owner IDS rose 4.3% to 225.6p.