Solid Q1 2020 performance and improved free cash flow

The Hague

Full press release

Financial results Q1 2020

In € million

Normalised EBIT3015
Free cash flow(8)5

Highlights Q1 2020

  • Ensuring safe and healthy environment for our people and clients remains key priority
  • Committed to FY 2020 outlook for normalised EBIT of between €110 million and €130 million; uncertainties regarding duration and severity of Covid-19 pandemic may impact ability to achieve this result
  • Strong volume development at Parcels since mid-March, supported by positive price/mix effect
  • Sandd integration ahead of plan in delivering anticipated benefits and synergies
  • More greetings cards contributing to a favourable price/mix development
  • Additional mail volume decline due to lower direct mail activity since mid-March
  • Measures to protect our people and clients and increased staff absence due to Covid-19 impacted operating costs
  • Disciplined working capital management contributed to improved free cash flow

CEO statement

Herna Verhagen, CEO of PostNL, said: “In an unprecedented first quarter, PostNL was able to achieve a solid performance resulting in improved free cash flow. The integration of the postal networks of PostNL and Sandd, completed on 1 February, is ahead of plan in delivering the anticipated benefits and synergies and was already accretive to normalised EBIT in Q1 2020. 

“Above all, ensuring a safe and healthy environment for our people, partners, clients and consumers in the midst of the Covid-19 pandemic is and will remain our key priority. We are applying all social distancing guidelines and health regulations to protect our people and consumers as much as possible and have implemented additional measures in our operations and facilities. We are proud of our people, who are fully focused on the ongoing delivery of mail, parcels and other shipments such as medical goods and food, allowing people to stay at home. We are actively monitoring developments and have had a comprehensive business continuity plan in place since early March.

“Our financial position is strong and, building on our solid Q1 performance, we are committed to achieving our FY 2020 outlook for normalised EBIT of between €110 million and €130 million. Going forward, we see both challenges and opportunities, as e-commerce has picked up and consumer mail is becoming more popular. However, visibility is limited and the uncertainties about the duration and severity of the pandemic may impact PostNL’s ability to achieve the projected result.”