PostNL reports first-quarter results above its expectations
Normalised EBIT of €7 million for Q1 2023
The Hague, the Netherlands, 8 May 2023
Highlights Q1 2023
- Volume development at Parcels better than expected:
- reported volumes -6.5%
- domestic volumes -5.0% (excluding non-recurring impact Covid-19)
- Reported volumes Mail in the Netherlands -10.8% with underlying development (excluding non-recurring impact Covid-19) at -8.1%
- Adaptive measures, good operational leverage, efficiency improvements and productivity gains partly mitigate inflationary pressure
- Progress as scheduled on plans for reduction of 200-300 FTEs in overhead, mainly at Parcels
- Outlook FY 2023 confirmed:
- normalised EBIT between €70 million and €100 million
- free cash flow between €10 million and €40 million
Herna Verhagen, CEO of PostNL, said: “Our strong focus on the adaptive measures that we initiated last year, such as optimisation of routes, staff and fleet and tight control of indirect costs, continued to contribute to our results. At the same time the actual volumes at Parcels developed favourably compared to our expectations, both domestically and internationally, especially in March. Together with good operational leverage, this resulted in a performance that came in slightly better than we had anticipated. Our cross-border activities continued the positive trend visible since late 2022.
“During the quarter we also worked hard to further detail our additional plans for the reduction of 200-300 FTEs in overhead, mainly at Parcels. These preparations are progressing according to plan, with expected annual savings of around €25 million set to become visible in 2024.
“Overall, we are satisfied with the start of year, which has shown the positive effect from the necessary steps taken to mitigate the impact of the macroeconomic situation and inflationary pressure on our volumes and costs. In the current economic environment, that continues to be volatile and uncertain, we are on track to deliver our outlook for 2023 normalised EBIT of between €70 million and €100 million.”
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.