FY outlook for normalised EBIT raised to at least €250 million as strong earnings momentum continues in Q1 2021
The Hague, the Netherlands, 26 April 2021 - PostNL today released preliminary results for the first quarter of 2021, which were around €50 million better than expected due to the impact from the lockdown that is continuing longer than anticipated. Both Parcels and Mail in the Netherlands reported results well above market estimates, with normalised EBIT around €90 million and around €60 million respectively.
- Total revenue at around €960 million (Q1 2020: €701 million)
- Normalised EBIT Q1 2021 at around €130 million (Q1 2020: €15 million) and free cash flow around €160 million
- Outlook FY 2021 for normalised EBIT increased to at least €250 million with free cash flow expected to be above €225 million
The Covid-19 lockdown continued through-out the first quarter of 2021 and resulted in extremely strong volume growth at Parcels. Although PostNL estimates that a significant part of this extra volume will be non-recurring, the underlying strong growth trend in e-commerce looks set.
At Mail in the Netherlands, volume development was supported by non-recurring items related to voting by mail and invites for the vaccination programme. In addition, the price/mix impact showed a positive development.
Based on the strong performance over the first quarter, PostNL is raising its FY 2021 outlook for normalised EBIT to at least €250 million (from its previous estimate of between €205 million and €225 million). Free cash flow is expected to come in at a minimum €225 million. The exact consequences of changes in the lockdown, like the further reopening of the non-essential stores in the Netherlands as of 28 April, remain uncertain.
Herna Verhagen, CEO of PostNL, commented: “We had a very good start of the year and continued the momentum that we’ve seen since the second quarter of last year. Our results once again prove our collective resilience and flexibility during ongoing unprecedented circumstances.”
Publication of Q1 2021 results
Full details for Q1 2021 will be disclosed as planned on 10 May 2021.
We are PostNL, here for everyone, bringing it all together for 225 years. With an extensive network of nearly 5,800 PostNL points, 11,000 letterboxes, and over 900 automated, also open to various carriers, along with millions of users of the PostNL app, we're always close by. We aim to be everyone's favourite deliverer by making it as easy as possible to send and receive parcels and mail. With nearly 34,000 colleagues working with us, we are part of society. We offer a range of services, including mail and parcel delivery, logistic e-commerce solutions, and cross-border solutions. On an average weekday in the Benelux, we deliver 1.1 million parcels and 6.9 million letters. We are commitment to customer satisfaction, providing opportunities for our employees, and generating value for our stakeholders through growth, digitalisation, and sustainability.
We optimise and support our physical networks through the use of smart digital solutions and introduce new propositions that add value for our customers. And aim for sustainable employment relationships by being a good employer to all people working with and for us. We focus on sustainability, making many journeys on foot and by bicycle, increasingly using cleaner fuels and electric vehicles, and offering innovative city logistics. PostNL N.V. is a publicly traded company with a turnover of €3.2 billion in 2023, 62% of which e-commerce related.