PostNL reports strong performance
Normalised EBIT up 38% to €54 million in Q2 2020
The Hague
Financial highlights
| in € million | Q2 2019 | Q2 2020 | HY 2019 | HY 2020 |
| Revenue | 681 | 789 | 1,365 | 1,490 |
| Normalised EBIT | 39 | 54 | 69 | 69 |
| Free cashflow | 7 | 93 | (1) | 98 |
Highlights Q2 2020 and outlook FY 2020
- Strong performance boosted by volume growth at Parcels
- Realisation of anticipated benefits and synergies from combined mail network ahead of plan
- Additional mail volume decline due to Covid-19
- Strong growth in free cash flow thanks to working capital management and phasing over quarters
- FY 2020 normalised EBIT expected to be strongly above previous guidance of €110 million - €130 million
CEO statement
Herna Verhagen, CEO of PostNL, said: “During the Covid-19 crisis, we’ve been able to play a key role in society by continuing to provide our services despite the challenges of the pandemic. At the same time, we’ve taken a set of comprehensive measures to ensure a safe and healthy work environment for our people, partners and customers. We are applying the social distancing guidelines and health regulations and have implemented additional measures in our operations and facilities. I’m proud of our people. Together we demonstrated the strength of our business model under challenging circumstances.
“Covid-19 has changed consumer behaviour, leading to an acceleration of online shopping. To accommodate the strong volume growth at Parcels, we scaled up capacity by 40%, proving the flexibility of our network and the skills of our logistics experts. Our capacity will be scaled up further to accommodate higher volumes towards the second half of the year. Scheduled investments of around €150 million for expansion of capacity are on track. In 2021, we expect to start operating our innovative sorting centre for small parcels as well as two new depots, one in Belgium and one in the Netherlands. At the same time, the combined mail network is keeping mail delivery accessible, reliable and affordable in an increasingly digital environment.
“Over the second quarter of 2020, we report strong business and financial performance. Building on our HY performance, we expect normalised EBIT for FY 2020 to come in strongly above the initially guided range of between €110 million and €130 million and a strong improvement in free cash flow. Although the uncertainties around the global impact of Covid-19 seem to increase, we have confidence in our ability to deliver a very solid full year performance.”
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.