Limited visibility due to Covid-19 developments
It remains to be seen how the Covid-19 pandemic will develop in the course of 2020 and over the longer term, and how this will impact the economic environment. Longer-term visibility remains limited due to uncertainties about the duration and severity of the pandemic. The outlook for PostNL’s FY 2020 performance provided today could be impacted by such uncertainties.
Business trends in April and May following Covid-19 pandemic
Governments in the Netherlands and Belgium took health and safety measures early in March to contain the Covid-19 outbreak. Since then, e-commerce growth has picked up meaningfully across almost all segments and products, and e-commerce penetration has increased. At the same time, part of this growth relates to specific consumer spending as a result of the Covid-19 situation. The social distancing measures put upward pressure on costs across PostNL.
In Parcels, volume growth accelerated from close to 14% at the end of March to above 25% in April and May. To accommodate this growth, PostNL scaled up its network considerably. It is currently operating at almost optimal capacity, resulting in improved efficiency levels. The favourable price/mix development in Parcels as reported in Q1 is continuing, as is the positive trend at Spring.
The volume decline at Mail in the Netherlands in April and May was further impacted by a stronger than expected decline in bulk mail, explained by companies postponing direct mail campaigns. This was only partially offset by a slightly better trend in single items.
Health and safety remains first priority
PostNL applies all social distancing guidelines and health regulations to protect its people, partners and consumers as much as possible. It has implemented additional measures in its operations and facilities to support social distancing and to ensure a safe and healthy working environment.
Q2 and HY 2020 results will be published as scheduled on 3 August 2020.
We are PostNL, the mail and logistics solutions provider for all. With our post and parcel deliverers that make it everywhere, our over 3,800 PostNL points and our 11,000 mailboxes – wherever you are, we’re always nearby. We aim to be our customers’ favourite deliverer by making it as easy as possible to send and receive parcels and letters. On weekdays, we deliver an average 900,000 parcels and 6.8 million letters across the Benelux region, and our 50,000 people are right at the heart of society. At PostNL, we aim to work as sustainably as we can, with lots of delivery kilometres done on foot and by bike, helped by our innovative city logistics and further electrification of our transport.
PostNL NV is a listed company with revenues of over €2.8 billion in 2019, 52% of which derives from e‑commerce. We provide mail and parcel delivery to our customers, logistics solutions for e-commerce and cross-border solutions.