Acceleration of transformation continues
The Hague
Financial highlights Q1 2018
- Revenue at €875 million (Q1 2017: €870 million)
- Revenue contribution from e-commerce related activities increased to 42% (Q1 2017: 34%)
- Underlying cash operating income €29 million (Q1 2017: €50 million)
- Profit for the period at €14 million (Q1 2017: €41 million)
- Net cash from operating and investing activities at €(18) million (Q1 2017: €(20) million)
- Consolidated equity position at €58 million (YE 2017: €34 million)
Operational highlights Q1 2018
- Addressed mail volume declined by 10.3% (adjusted volume decline 9.6%)
- Delivery quality at 95%
- €8 million cost savings realised
- Parcels volumes increased by 25%
Outlook 2018 reconfirmed
- Full year underlying cash operating income of between €160 million and €200 million
- Subject to final implementation of SMP decision
CEO statement
Herna Verhagen, CEO of PostNL: “As anticipated, our Q1 performance was below the comparable quarter last year. However, we continue to make good progress in our transformation to be the postal & logistic solutions provider in the Benelux. 42% of our revenue is now related to e-commerce, showing that we are on track towards our 2020 ambition of more than 50%.
Volume decline in Mail in the Netherlands continued in line with our expectations. Substitution remains the driver, but, again, we see intensifying competition from postal operators, supported by the earlier ACM measures. We achieved €8 million of cost savings and continue to make progress in the preparation and implementation of our cost savings projects.
We are actively participating in the postal dialogue, initiated by Dutch government. Further discussions are scheduled to take place shortly. We repeat that to facilitate an orderly and rational adjustment of the Dutch postal market to declining volumes, regulation must be amended as soon as possible and consolidation of postal market players is inevitable.
In Parcels, strong volume growth reflects our solid position in the Benelux e commerce logistics market. Revenue improved, also helped by last year’s acquisitions in logistics services. The strong volume growth drives the planned investments in growth, impacting results. The construction of three new sorting centres started. We expect these to contribute to efficiency improvements towards the end of the year.
In International, the performance was unsatisfactory. Competition remained fierce, especially in Germany and Italy.
We confirm our outlook for 2018. Our aim to pay progressive dividend remains unchanged. The AGM approved the dividend of €0.23 per share for 2017, the final dividend of €0.17 per share will be payable on 9 May.”
About PostNL
We are PostNL, here for everyone, bringing it all together for 225 years. With an extensive network of nearly 5,800 PostNL points, 11,000 letterboxes, and over 900 automated, also open to various carriers, along with millions of users of the PostNL app, we're always close by. We aim to be everyone's favourite deliverer by making it as easy as possible to send and receive parcels and mail. With nearly 34,000 colleagues working with us, we are part of society. We offer a range of services, including mail and parcel delivery, logistic e-commerce solutions, and cross-border solutions. On an average weekday in the Benelux, we deliver 1.1 million parcels and 6.9 million letters. We are commitment to customer satisfaction, providing opportunities for our employees, and generating value for our stakeholders through growth, digitalisation, and sustainability.
We optimise and support our physical networks through the use of smart digital solutions and introduce new propositions that add value for our customers. And aim for sustainable employment relationships by being a good employer to all people working with and for us. We focus on sustainability, making many journeys on foot and by bicycle, increasingly using cleaner fuels and electric vehicles, and offering innovative city logistics. PostNL N.V. is a publicly traded company with a turnover of €3.2 billion in 2023, 62% of which e-commerce related.