PostNL reports strong performance
Normalised EBIT up 38% to €54 million in Q2 2020
The Hague
Financial highlights
| in € million | Q2 2019 | Q2 2020 | HY 2019 | HY 2020 |
| Revenue | 681 | 789 | 1,365 | 1,490 |
| Normalised EBIT | 39 | 54 | 69 | 69 |
| Free cashflow | 7 | 93 | (1) | 98 |
Highlights Q2 2020 and outlook FY 2020
- Strong performance boosted by volume growth at Parcels
- Realisation of anticipated benefits and synergies from combined mail network ahead of plan
- Additional mail volume decline due to Covid-19
- Strong growth in free cash flow thanks to working capital management and phasing over quarters
- FY 2020 normalised EBIT expected to be strongly above previous guidance of €110 million - €130 million
CEO statement
Herna Verhagen, CEO of PostNL, said: “During the Covid-19 crisis, we’ve been able to play a key role in society by continuing to provide our services despite the challenges of the pandemic. At the same time, we’ve taken a set of comprehensive measures to ensure a safe and healthy work environment for our people, partners and customers. We are applying the social distancing guidelines and health regulations and have implemented additional measures in our operations and facilities. I’m proud of our people. Together we demonstrated the strength of our business model under challenging circumstances.
“Covid-19 has changed consumer behaviour, leading to an acceleration of online shopping. To accommodate the strong volume growth at Parcels, we scaled up capacity by 40%, proving the flexibility of our network and the skills of our logistics experts. Our capacity will be scaled up further to accommodate higher volumes towards the second half of the year. Scheduled investments of around €150 million for expansion of capacity are on track. In 2021, we expect to start operating our innovative sorting centre for small parcels as well as two new depots, one in Belgium and one in the Netherlands. At the same time, the combined mail network is keeping mail delivery accessible, reliable and affordable in an increasingly digital environment.
“Over the second quarter of 2020, we report strong business and financial performance. Building on our HY performance, we expect normalised EBIT for FY 2020 to come in strongly above the initially guided range of between €110 million and €130 million and a strong improvement in free cash flow. Although the uncertainties around the global impact of Covid-19 seem to increase, we have confidence in our ability to deliver a very solid full year performance.”
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.