8-8-2022 07:00

PostNL reports normalised EBIT of €10 million for Q2 2022

The Hague

PDF press release (EN)
PDF persbericht (NL)

Financial highlights Q2 2022

In € million	Q2 2021	Q2 2022	% Change	HY2021	HY2022	% Change
Revenue	838	746	-11%	1,800	1,552	-14%
Normalised EBIT	63	10	-84%	193	43	-78%
assumed to be non-recurring and related to Covid-19	26	(0)		69	0
Free cash flow	54	(43)		213	10
Normalised comprehensive income	57	19	-67%	169	53	-69%

Key takeaways Q2 2022

High inflation and pressure on consumer spending impacted costs and development e-commerce volume
Domestic volume growth at Parcels ~3%, excluding non-recurring impact related to Covid-19; overall, volumes -12.6% reflecting no further Covid-19 impact and development in cross-border activities
Volumes at Mail in the Netherlands -7.4%, slightly better than expected
Free cash flow performance reflects step-down in normalised EBIT and working capital phasing
20% improvement in carbon efficiency
Interim dividend 2022 set at €0.14 per share
Outlook FY 2022:
- normalised EBIT revised to €145 million - €175 million
- free cash flow of €110 million - €140 million, at lower end of initial range

CEO statement

Herna Verhagen, CEO of PostNL, said: “The current macroeconomic and geopolitical environment is challenging and causes headwinds, especially for the logistics industry. This is causing prolonged uncertainty and limits visibility on the development of consumer behaviour.

“An unprecedented high level of inflation resulted in rising fuel and labour costs and impacted our performance. We stepped up our actions on tight cost control and are taking adaptive measures to mitigate the ongoing headwinds. Clearly, these higher costs cannot only be absorbed through improved efficiency and productivity gains, but will also need to result in price adjustments going forward. At the same time we are maintaining our efforts to align our operations with anticipated volumes, while holding on to the necessary flexibility and desired quality level for peak season within the limits of the current tight labour market.

“Furthermore, inflation puts pressure on consumer spending, which has meanwhile rebalanced towards services since society reopened. This impacts parcel volumes and reduces predictability. Our market share remained stable. In this difficult environment, Mail in the Netherlands continues to deliver its solid performance.

“Taking into account the uncertain economic outlook and limited visibility, we are revising our FY 2022 outlook for normalised EBIT. Adjusting capex to align with volume projections and applying strict working capital management should allow for a delivery of a strong free cash flow at the lower end of our initial outlook range.

“Meanwhile, we are committed to executing our strategy by focusing on providing our customers with an excellent experience, and working with highly satisfied people in a compliant and sustainable way.”

About PostNL

We are PostNL, the mail and logistics solutions provider for all. With our mail and parcel deliverers who get everywhere, our over 4,800 PostNL locations and 11,000 postboxes, 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 37,000 people are right at the heart of society. On weekdays, we deliver an average 1.2 million parcels and 8 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 €3.5 billion in 2021. We provide deliveries of mail and parcels, logistics solutions for e-commerce, and cross-border solutions.