Posti Group Corporation Interim Report January–March 2025
Unless otherwise stated, the figures in brackets refer to the corresponding period in the previous year.
January-March
Financial highlights
Net sales decreased by 6.5% to EUR 357.1 (382.1) million.
Adjusted EBITDA decreased to EUR 42.5 (53.0) million, or 11.9% (13.9%) of net sales.
EBITDA decreased to EUR 37.9 (49.9) million, or 10.6% (13.1%) of net sales.
Adjusted operating result decreased to EUR 10.5 (21.2) million, representing 3.0% (5.5%) of net sales.
Operating result decreased to EUR 5.0 (18.1) million, representing 1.4% (4.7%) of net sales.
Net debt to adjusted EBITDA was 2.3x (1.2x). The increase was mainly caused by the financing of the extra dividend and investments.
Operational highlights in Q1
Increased ecommerce and recommerce market in Finland contributed positively to the total parcel volumes in the eCommerce and Delivery Services segment. Parcel volumes increased by 2% (5%).
Net sales of Postal Services were affected by the discontinuation of unaddressed marketing services. This change will enable operational development and have a positive effect on profitability in the future. The addressed letter volumes decreased by 16% (16%), which is typical for the first quarter.
The modern and larger logistics center in Tallinn, Estonia, which opened in March is well equipped to handle the growing parcel volumes.
Posti is now operating under one Posti brand in all its operating countries. The change strengthens Posti’s position as a versatile and international logistics partner.
Outlook for 2025 unchanged
In 2025, Posti is expecting its net sales and adjusted EBITDA to be on the previous year’s level. In 2024, Posti’s net sales were EUR 1,521.4 million and adjusted EBITDA was EUR 207.6 million.
Current macroeconomic and market conditions increase uncertainty to economic projection and consumer confidence. Consumer behavior affects Posti's business and may further impact our actual results.
The Group’s business is characterized by seasonality. The net sales and adjusted EBITDA in the segments are not accrued evenly over the year. In consumer parcels and Postal Services, the first and fourth quarters are typically strong, while the second and third quarters are weaker. The postal volume decline is expected to continue.
Key figures of Posti Group
1-3 2025 | 1-3 2024 | 1-12 2024 | ||
|---|---|---|---|---|
Net sales, EUR million | 357.1 | 382.1 | 1,521.4 | |
Adjusted EBITDA, EUR million | 42.5 | 53.0 | 207.6 | |
Adjusted EBITDA margin, % | 11.9% | 13.9% | 13.6% | |
EBITDA, EUR million | 37.9 | 49.9 | 196.6 | |
EBITDA margin, % | 10.6% | 13.1% | 12.9% | |
Adjusted operating result, EUR million | 10.5 | 21.2 | 80.1 | |
Adjusted operating result margin, % | 3.0% | 5.5% | 5.3% | |
Operating result, EUR million | 5.0 | 18.1 | 68.0 | |
Operating result margin, % | 1.4% | 4.7% | 4.5% | |
Result for the period, EUR million | -0.2 | 12.3 | 43.8 | |
Return on capital employed (12 months), % | 8.1% | 0.3% | 11.2% | |
Net debt, EUR million | 454.0 | 245.1 | 257.5 | |
Net debt / adjusted EBITDA | 2.3x | 1.2x | 1.2x | |
Operative free cash flow, EUR million | -21.4 | 8.3 | -2.9 | |
Personnel, end of period | 13,905 | 15,948 | 14,764 | |
Personnel on average, FTE | 11,792 | 13,133 | 13,095 | |
Earnings per share, basic, EUR | -0.01 | 0.31 | 1.10 | |
Dividend per share, EUR | 0.83 | |||
Dividend, EUR million | 33.0 |
Antti Jääskeläinen, President and CEO
We have maintained our systematic approach to achieving our long-term goals while remaining agile in responding to challenging market conditions. The first quarter of the year is traditionally a somewhat slower quarter after the annual peak season. However, we saw a substantial increase in recommerce volumes, which clearly demonstrates a shift in consumer buying behavior and the importance of parcel deliveries in the growing consumers’ secondhand markets.
During the first quarter, the Group net sales decreased by 6.5% to EUR 357.1 (382.1) million, as expected. The decline in net sales was mainly a consequence of declined volumes and net sales in Postal Services, as well as low demand for business-to-business services in other business groups. In addition, the consumers and our customers remained cautious, which impacted sales negatively. The Group adjusted EBITDA decreased to EUR 42.5 (53.0) million and was affected by the decrease in the Group’s net sales. Our teams did a great job in continuing to improve operational efficiency, which helped us to defend profitability, despite lower sales.
Total parcel volumes in the eCommerce and Delivery Services increased in the first quarter, and we saw a significant increase especially in the consumer recommerce volumes in Finland. The total net sales and profitability marginally declined due to lower demand in the B2B and freight business. The warehousing and logistics market continued to be weak, which inevitably impacted on the Fulfillment and Logistics Services segment’s net sales negatively, and subsequently our profitability. Operational efficiency remained at a high level in Postal Services. Our earlier decision to discontinue the unaddressed marketing services at the beginning of this year negatively impacted on the Postal Services volumes and therefore net sales, as expected. The change will, however, enable better operational efficiency and profitability in the future. Addressed mail volumes declined, which is typical for the first quarter.
Looking ahead, we are well-positioned for the future. Our new and modern logistics center in Tallinn, Estonia will meet the rising demands of the ecommerce market. Also, our Small Parcel to Door service as well as our Saturday parcel deliveries have received positive feedback from our customers. We have now transitioned to operate under one Posti brand in all our operating countries. Bringing our comprehensive and vast range of logistics solutions under one brand serves our customers better and supports our growth in the future.
We remain steadfast in our commitment to achieving our ambitious climate goals and are continuously driving forward with determination. As we announced in our Sustainability Report, published this quarter, our own emissions (scope 1 and 2) decreased by 19% in 2024, compared to the previous year. During the quarter we also published our renewed customer emissions report. The emissions report is now available in the OmaPosti Pro service, which better serves our corporate customers as they can download the report independently and at their convenience.
We expect the uncertainty in markets to continue in the second quarter of the year. Taking care of our people remains at the core of our strategy. I was happy that our employee engagement took another big leap forward in our personnel survey, as did Posti’s reputation and trust metrics in an external survey. These indicate a caring working culture and a team that pulls together. This is important in every organization but especially in a service business like ours.
We move forward with clear goals ahead, continue to seek growth and focus on maintaining our profitability according to our strategy. I want to thank the whole Posti team again for the dedication and hard work this quarter.