Financial highlights Q1 2018
- Revenue at €875 million (Q1 2017: €870 million)
- Revenue contribution from e-commerce related activities increased to 42% (Q1 2017: 34%)
- Underlying cash operating income €29 million (Q1 2017: €50 million)
- Profit for the period at €14 million (Q1 2017: €41 million)
- Net cash from operating and investing activities at €(18) million (Q1 2017: €(20) million)
- Consolidated equity position at €58 million (YE 2017: €34 million)
Operational highlights Q1 2018
- Addressed mail volume declined by 10.3% (adjusted volume decline 9.6%)
- Delivery quality at 95%
- €8 million cost savings realised
- Parcels volumes increased by 25%
Outlook 2018 reconfirmed
- Full year underlying cash operating income of between €160 million and €200 million
- Subject to final implementation of SMP decision
Herna Verhagen, CEO of PostNL: “As anticipated, our Q1 performance was below the comparable quarter last year. However, we continue to make good progress in our transformation to be the postal & logistic solutions provider in the Benelux. 42% of our revenue is now related to e-commerce, showing that we are on track towards our 2020 ambition of more than 50%.
Volume decline in Mail in the Netherlands continued in line with our expectations. Substitution remains the driver, but, again, we see intensifying competition from postal operators, supported by the earlier ACM measures. We achieved €8 million of cost savings and continue to make progress in the preparation and implementation of our cost savings projects.
We are actively participating in the postal dialogue, initiated by Dutch government. Further discussions are scheduled to take place shortly. We repeat that to facilitate an orderly and rational adjustment of the Dutch postal market to declining volumes, regulation must be amended as soon as possible and consolidation of postal market players is inevitable.
In Parcels, strong volume growth reflects our solid position in the Benelux e commerce logistics market. Revenue improved, also helped by last year’s acquisitions in logistics services. The strong volume growth drives the planned investments in growth, impacting results. The construction of three new sorting centres started. We expect these to contribute to efficiency improvements towards the end of the year.
In International, the performance was unsatisfactory. Competition remained fierce, especially in Germany and Italy.
We confirm our outlook for 2018. Our aim to pay progressive dividend remains unchanged. The AGM approved the dividend of €0.23 per share for 2017, the final dividend of €0.17 per share will be payable on 9 May.”
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 weekdays, we deliver, on average, 675,000 parcels and 8 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 44,000 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 2017 our revenues reached €3.5 billion.