PostNL reports strong Q3 2020 performance

Full-year normalised EBIT expected to be at least €175 million

The Hague

Full press release

Financial highlights

in € millionQ3 2019Q3 2020YTD 2019YTD 2020
Normalised EBIT263695105
Free cashflow40539103

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.”