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Posti Group Corporation: Posti Group's net sales in Q1 2017 grew by 7% mainly driven by acquisitions - operating result improved

28.04.2017

POSTI GROUP CORPORATION INTERIM REPORT, APRIL 28, 2017 AT 10:00 A.M. (EET)

Posti Group Corporation Interim Report Q1/2017

Financial highlights

Operational highlights

Outlook

Figures in brackets refer to the comparison period, i.e. the same period last year, unless otherwise stated. 

Key figures of Posti Group      
  1-3/2017 1-3/2016 1-12/2016
Net sales, EUR million 413.8 386.1 1,607.6
Adjusted EBITDA, EUR million 35.5 29.8 126.7
Adjusted EBITDA, % 8.6 7.7 7.9
EBITDA, EUR million 30.0 21.2 116.0
EBITDA, % 7.3 5.5 7.2
Adjusted operating result, EUR million 15.5 10.8 47.1
Adjusted operating result, % 3.8 2.8 2.9
Operating result, EUR million 10.0 0.6 30.7
Operating result, % 2.4 0.1 1.9
Result before taxes, EUR million 9.7 -0.6 29.5
Result for the period, EUR million 5.9 0.1 23.2
Cash flow from operating activities 3.5 29.1 63.1
Return on equity (12 months), % 5.1 3.9 3.9
Return on invested capital (12 months), % 6.4 4.3 5.1
Equity ratio, % 50.1 45.4 54.9
Gearing, % -11.7 -15.4 -13.6
Gross capital expenditure, EUR million 24.4 11.4 100.4
Employees on average 19,986 20,577 20,632
Employees on average, FTE 18,058 18,542 18,529
Dividends, EUR million     60.0

  

Heikki Malinen, President and CEO

"The ongoing trend of digitization in the business environment remains strong and reflects directly on Posti, with the Group undergoing a multi-year structural transformation as communication shifts from paper to digital. However, the digitization is not only a threat, as it also offers Posti new business opportunities. Posti continues to build new cornerstones for its business in growing markets according to its strategy: the areas of future growth are in parcel and logistics services. The decline in mail volumes continued strongly and was 8%.

Net sales increased by 7.2% in the first quarter of the year. While letter product volumes continued to fall, the volumes of logistics and freight products showed favorable development in line with the improving economic climate. Logistics Services grew by 34.4% and Parcel Services by 4.2%. Net sales was impacted by currency rates and the larger amount of working days in the period. Furthermore, a significant proportion of the year-on-year growth is related to the Group's expansion through acquisitions. Digitization and the market entry of new players have had a substantial effect on the volumes of basic products, but targeted pricing changes have mitigated the financial impacts of declining mail volumes. Posti has also developed new and prominent service concepts in the area of home services, but their share of net sales remains low for the time being. Parcel point concepts have been developed further.

Posti's adjusted EBITDA in the first quarter was 8.6% (7.7%). The higher profitability was particularly attributable to the improved results in logistics and Russian operations. The year-on-year improvement in the result was partly due to Easter falling in April this year, which affects the distribution of the result between the first and second quarter. The improved profitability of logistics services was supported by a general increase in demand as well as improved operational efficiency. Posti has continued to implement measures to improve the quality of basic services.

The reform of the Postal Act, which is still in the drafting stage, plays a key role with regard to Posti's future operating conditions.

Itella Russia's net sales in the Group's reporting currency increased by 31%. The measures taken to improve the profitability of Itella Russia's operations have produced good results.

OpusCapita's Buyer-Supplier Ecosystem business unit continued to achieve global growth, but OpusCapita's Document and Transaction Processes operations are negatively affected by the same trends that are influencing Posti's letter volumes. OpusCapita's strategy is to seek growth in the Buyer-Supplier Ecosystem business."

 

 

APPENDICES
Posti Group's Interim Report in full (PDF)

FURTHER INFORMATION
Heikki Malinen, President and CEO, and Sari Helander, CFO
Tel. +358 20 452 3366 (MediaDesk)

FINANCIAL CALENDAR IN 2017
Interim Report Q2/2017: July 27, 2017, at 12:00
Interim Report Q3/2017: October 26, 2017, at 9:00

DISTRIBUTION
NASDAQ OMX Helsinki
Key media
www.posti.com/financials

IMAGES AND LOGOS
www.posti.com/newsroom 

Posti Group is your first choice in postal, logistics and e-commerce services. We manage the flow of commerce and everyday life in ten countries. Our net sales in 2016 amounted to EUR 1,608 million. We employ approximately 20,500 professionals who serve our customers in Finland under the name Posti and in other countries under the name Itella. All of our services in Finland are carbon neutral. www.posti.com.

Posti-Group-Interim-Report-Q1-2017