PostNL reports Q4 & FY 2024 results
The Hague, 24 February 2025
Highlights
- Financial performance in line with preliminary results published on 20 January 2025
- 6% further improvement in average carbon efficiency in 2024
- €0.07 dividend per share to be proposed at AGM
CEO statement
Herna Verhagen, CEO of PostNL, commented: “With a normalised EBIT of €53 million, 2024, from this perspective, was unsatisfactory. Thanks to well-executed cash and balance sheet management we can propose a €0.07 dividend per share to the AGM. We mitigated the impact from changing market dynamics as much as possible with our relentless efforts to adapt our operations and offerings with ongoing attention for our customers. We further improved efficiency and capacity utilisation and have achieved costs savings as planned both at Mail in the Netherlands and at Parcels. Our favourable NPS scores reaffirm our strong position relative to our competitors and show our commitment to customers.
“At Mail in the Netherlands, the step-down in result was over €30 million for the year. With mail volumes down by 8%, the structural decline continued. The financial performance strongly underlines that the current business model is no longer sustainable. We are continuing to make every effort to address this situation and have presented our clear roadmap towards a future-proof postal service that meets consumer needs. PostNL acknowledges that Dutch government needs to carefully asses the future of the postal service, but we stress that without intervention the postal service is not sustainable, putting disproportionate pressure on PostNL. We have submitted an application for a financial contribution of €30 million for 2025 and €38 million for 2026 to cover costs for the universal postal service (USO) that arise from a legal obligation.
“At Parcels, we maintained our strong market position with a stable market share. Volumes grew by 7%, only slightly less than anticipated. However, the shift in mix was difficult to predict and turned out to be unfavourable. Client concentration accelerated, putting pressure on margins, and this was the main driver of the shortfall in results. Furthermore, the record-high number of parcels in a very short peak period came with a less favourable volume distribution. Market dynamics in the sector are changing, marked by rising costs, a tight labour market and evolving consumer behaviour. As a leading player in last-mile delivery in the Benelux region, we repeat our commitment to further investments and innovation. We will respond with yield measures, specifically aimed at large customers, to enhance customer value. Other strategic initiatives focus on capturing international growth by expanding our European network and presence in Belgium, and accelerating our Out-of-Home strategy. We are also further stepping-up our investments in health & well-being and sustainability. But it is a joint responsibility of all players in the chain to address the challenges and to strive for a more balanced distribution of value in the chain to support sustainable future e-commerce growth.
Pim Berendsen, CFO of PostNL, added: "The changing market dynamics, together with the impact this has on our performance, underscores the need to adjust elements of our strategy. We have made balanced strategic decisions to invest in 2025 to safeguard the longer-term perspectives for our stakeholders. For 2025, this results in normalised EBIT that is expected to be in line with 2024. We emphasise our intention to pay a dividend over 2025 and hold on to our aim to be properly financed, taking into consideration the anticipated improvement in performance going forward and the progress towards a future-proof postal service. I look forward to further explain the adjustments of our strategy and the connected medium-term financial guidance at a Capital Markets Update in September."
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.