Express parcel delivery group TNT booked a drop in turnover to €6.7bn, while its net loss rose to €122bn in 2013.

These figures compare with turnover of €7bn and net loss of €84 in 2012.

Part of the loss can be attributed to higher taxes, the company said in a statement, while the market remains challenging, particularly in Italy.

Despite large-scale cost-cutting at TNT, direct costs remained the same as in 2013. ‘The conclusion is clear,’ CEO Tex Gunning said in the statement. ‘We must move to a more substantial improvement.’

TNT confirmed its forecast of an operational margin of 8% in 2015. In 2013 this margin was 6%.