Acceleration of transformation continues
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 mail and logistics solutions provider for all. With our mail and parcel deliverers who get everywhere, our 5,500 PostNL locations, 11.000 mail boxes and 517 automated parcel lockers, we are always nearby. We aim to be our customers’ favourite deliverer by making it as easy as possible for them to send and receive parcels and letters. Our over 35,000 people are right at the heart of society. On weekdays, we deliver an average 1.1 million parcels and 7.4 million letters across the Benelux region. Our focus is on quality for our customers, creating opportunities for our people and adding value for our stakeholders through growth, digitalisation and sustainability initiatives.
We optimise and support our physical networks by using smart digital solutions and launching new propositions that create value for our customers. We build long-lasting working relationships by acting as a good employer and client for everyone who works for and with us. To make our deliveries as sustainable as possible, we cover a lot of kilometres on foot or by bicycle or e-bike, provide innovative city logistics, use cleaner fuels, and use electric vans and light electric trucks. PostNL NV is a listed company with revenues of €3.1 billion in 2022, 61% of this derived from e-commerce. We provide deliveries of mail and parcels, logistics solutions for e-commerce, and cross-border solutions.