Financial highlights Q1 2015
- Revenue at € 1,058 million (Q1 2014: € 1,033 million)
- Underlying cash operating income at € 68 million (Q1 2014: € 77 million)
- Net cash from operating and investing activities at € 21 million (Q1 2014: € 23 million)
- Consolidated equity position at €(574) million (YE 2014: €(597) million)
Operational highlights Q1 2015
- Addressed mail volume declined by 13.2% (adjusted for one fewer working day: 12.5%)
- High delivery quality at 96.9%
- € 15 million of cost savings achieved, phasing in implementation restructuring projects
- Parcels volume increased by 8.0%
- Slight improvement in International
Outlook 2015 reconfirmed*
- Expected full year underlying cash operating income between € 280 million and € 320 million
Herna Verhagen, CEO of PostNL: “Our performance in the first quarter is in line with our expectations. In Mail in the Netherlands, price increases and cost savings did not fully compensate for the volume decline. The volume development corresponds with fluctuations that come with substitution and phasing in working days. For the full year we expect volume decline to be within the earlier guided range of 9% -12%. Cost savings are expected to be higher in the second half of 2015 due to phasing in the implementation of the restructuring plans. The outlook for cost savings remains unchanged. The pending regulatory files continue to be a significant point of management attention given the potential impact beyond 2015.
Parcels continues its solid performance, with volumes up 8%, significantly driven by international growth. The result of International slightly improved, showing the first effect from our profit improvement program in Germany.
Looking forward, we continue to expect the second half year to be stronger than 2014. We reconfirm our full year 2015 outlook of underlying cash operating income between € 280 million and € 320 million.
Our financial position developed positively with net cash in line with Q1 2014 and an improved equity position. The application of a pension liability ceiling in the accounting of our pension obligation significantly reduces the further sensitivity of our equity position for lower interest rates. We support the announced offer by FedEx to acquire TNT Express, which will have an additional positive impact on our financial position when completed.
We regret that the joint venture in the United Kingdom did not succeed. Amongst other things, the continuous regulatory uncertainties in the three countries where we operate has led us to launch a strategic review of our activities abroad.
We are scheduling a strategy update around the publication of our third quarter results.”
* Outlook 2015 is excluding the result from the activities in the United Kingdom
We are PostNL. We are an essential link between the physical and the online world. We have the largest network for letters, parcels and e-commerce in the Benelux countries. Our combinations of smart networks and digital applications enable us to provide our clients with valuable solutions. We live in a world where digital applications play an increasingly large role in our daily lives. These services develop very rapidly. We put our resourcefulness to good use to constantly think up new ways to connect senders and receivers.
As the first listed postal company, we are an example to the rest of the world in automatic letter sorting. And our innovative parcels network is completely adapted to the wishes of web retailers. Outside the Netherlands, we are active in Germany, the United Kingdom, Italy, Belgium and Luxembourg. PostNL employs a total of approximately 56,000 people. In 2014 our revenues reached almost € 4.3 billion.