Financial highlights Q1 2017
- Revenue at €870 million (Q1 2016: €864 million)
- Revenue from e-commerce increased to 34% (Q1 2016: 31%)
- Underlying cash operating income at €50 million (Q1 2016: €61 million)
- Net cash from operating and investing activities at €(20) million (Q1 2016: €(26) million)
- Consolidated equity position at €(32) million (YE 2016: €(79) million)
Operational highlights Q1 2017
- Addressed mail volume declined by 9.6% (adjusted for working days: 10.3%)
- Delivery quality continued to be high at 96.7%
- €15 million of cost savings realised
- Parcels volumes increased by 8% (underlying 15%)
Outlook 2017 reconfirmed
- Full year underlying cash operating income of between €220 million and €260 million
Herna Verhagen, CEO of PostNL: “We indicated previously that our result in the first quarter would be below last year’s result. Actual quarterly performance was in line with these expectations, supported by some incidentals. We reconfirm our 2017 outlook of achieving an underlying cash operating income of between €220 million and €260 million.
With shareholders approving our dividend proposal, an important milestone has been achieved. On 11 May PostNL will reinitiate dividend payment, delivering on our earlier promise. Going forward we expect to reward our shareholders with a progressive dividend as we continue to transform our business to become a logistics e-commerce company, supported by strong e-commerce growth. For example, we continue to solidify our footprint in food distribution and have the ambition to become the e-food logistics service provider in the Benelux.
Parcels shows 15% underlying volume growth. Strong e-commerce growth continues. Turnover in our logistics services also grew, as did demand for additional services, for example same-day. The results were solid.
In Mail in the Netherlands volume decline continued, mainly driven by substitution. However, we also see consolidators delivering more mail via their own networks, supported by the ACM measures. Volume decline is the primary driver underlying the lower result. Our restructuring initiatives are well on track and are progressing according to plan. The pending regulatory files continue to require a significant amount of management attention. We remain concerned about the expected adverse effects related to the possible outcome of significant market power and related measures.
In the first quarter, the result in International improved and shows a mixed picture. The positive contribution of last year’s acquisition in Germany and the first signs of the expected recovery in Italy were partly offset by slightly lower than expected revenue in Spring and lower volumes and revenue in the other German activities.”
We are PostNL. The postal and logistic solutions provider. For our customers, we are the link between the physical and the online world. We facilitate communications between people and companies. We deliver parcels seven days a week and letters five days a week. On an average day, we deliver 575,000 parcels and 9 million letters throughout the Benelux. We offer more and more new services through combinations of smart networks, digital applications and the right communications channels. In doing so, we aim to make the daily lives of our customers easier.
As the first listed postal company, we have the largest and most modern network for letters, parcels and e-commerce in the Benelux countries. In addition, we also operate in Germany, Italy and eight other countries across the world. PostNL employs a total of 46,000 people. With our loyal workforce, extensive networks and innovative drive, our ambition is to be the leading postal and logistics solutions provider in chosen markets. In 2016 our revenues reached €3,4 billion.