PostNL reports strong Q3 2020 performance
Full-year normalised EBIT expected to be at least €175 million
The Hague
Financial highlights
| in € million | Q3 2019 | Q3 2020 | YTD 2019 | YTD 2020 |
| Revenue | 636 | 742 | 2,001 | 2,232 |
| Normalised EBIT | 26 | 36 | 95 | 105 |
| Free cashflow | 40 | 5 | 39 | 103 |
Highlights Q3 2020 and outlook FY 2020
- Strong operational performance in Parcels continued
- Realisation of anticipated benefits and synergies from combined mail network ahead of schedule
- Mail volume decline slowed compared with Q2
- Good underlying FCF performance, development in Q3 impacted by timing effects in line with expectations
- FY 2020 normalised EBIT expected to be at least €175 million
- Resumption of dividend for FY 2020 expected
CEO statement
Herna Verhagen, CEO of PostNL, said: “Together with all of our people, we have demonstrated the strength of our business model under challenging circumstances. With the pandemic numbers on the rise again, we remain vigilant in respecting all hygiene and safety measures within our operations and offices. The health and safety of our people, customers and consumers remains our key priority.
“Over the third quarter, we again reported a very good set of results. Strong operational performance at Parcels continued and the result at Mail in the Netherlands benefited from the combination of the mail networks. To prepare for our peak season, we are further scaling up capacity in Parcels, renting additional locations and transportation and hiring people for delivery and to staff our sorting centres. These will be also fully operational on Sundays, so as to accommodate the high volumes.
“On the back of our strong performance, supported by the impact of Covid-19 on online shopping, our financial position is improving significantly, buoyed up also by the announced sale-and-lease-back transaction. I am pleased to say that we expect to resume dividend payments over full-year 2020, earlier than expected. We will further accelerate digitalisation to strengthen our competitive position and contribute to customer satisfaction, which underpins our ambition to be the favourite deliverer in the Benelux region.
“Going forward, uncertainties seem to be increasing due to the second wave of the pandemic. Visibility remains limited and also depends on social distancing measures and potentially higher sick leave numbers as a result of the increasing number of infections, as well as macro-economic developments and consumer confidence.”
About PostNL
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.