After a difficult period last year, German retail and services company Otto has found its way back to growth. According to preliminary calculations, the owner of delivery service Hermes achieved turnover growth of 4.3% to 12.6 billion euros in the year to 29 February 2016.

“We have ended the financial year with profits before tax and have therefore brought the company out of the red," said Hans-Otto Schrader, Chairman of the Otto Group Executive Board.

During financial 2015/16 the company strengthened its core business, expanded its e-commerce further and reorganised the company portfolio. “The past financial year marked a turning point," emphasized Hans-Otto Schrader. "We established a sound basis for the years to come.”

In Germany, the company’s most important market, revenue climbed above average by 5.5%. Otto’s businesses in North and South America and in Great Britain delivered strong increases, while sales for the French 3SI Group and the Otto Group Russia declined again.

Once again online retail was a key driver with revenue up by 400 million euros, or 6.5% to reach 6.6 billion euros. The Otto group is one of the largest online business-to-consumer retailers in the world.

In the previous financial year, Otto grew by only 0.5%, hit by a net loss of 196 million euros. In an effort to turn around the business, the Executive Board announced it would dispose of some of its companies. The reorganisation saw the sale of the office-supplies mail-order companies OTTO Office and JM Bruneau, as well as the fashion mail order company Alba Moda and two French service companies. Additionally, all retail activities for the 3SI Group have been put up for sale in France.

The company anticipates an approximate 4% growth in revenue for 2016/17.