The deteriorating market impacted on Itella's results



Itella Corporation Interim Report January-June 2013

April-June 2013

January-June 2013


Itella key figures 4-6/2013 4-6/2012 1-6/2013 1-6/2012 2012
Net sales, EUR million 495.1 473.2 991.1 958.5 1,946.7
Operating result (non-IFRS), EUR million*) 2.4 5.9 14.8 28.7 53.2
Operating result (non-IFRS), %*) 0.5 1.2 1.5 3.0 2.7
Operating result, EUR million -10.1 -3.1 0.7 18.0 39.0
Operating result, % -2.0 -0.7 0.1 1.9 2.0
Result before taxes, EUR million -14.4 -5.7 -6.8 13.6 30.8
Operating result, EUR million -10.9 -7.5 -6.2 4.2 14.1
Return on equity, %, 12 months     0.5 -1.8 2.1
Return on invested capital (12 months), %     2.7 2.2 4.7
Equity ratio, %     46.5 46.8 46.2
Net gearing, %     25.6 22.0 23.5
Gross capital expenditure, EUR million 16.1 23.5 27.1 45.2 134.7
Employees on average     27,841 27,431 27,460
Dividends, EUR million - - - - 6.8
*) Non-IFRS = Excluding non-recurring items          


President and CEO Heikki Malinen:

"The overall market situation and consumer confidence declined clearly as summer approached. In Itella's business, the weaker market situation was particularly visible in road freight, the handling of goods and postal delivery volumes. The speed of growth slowed down, particularly with regard to the consumer segment. We were nonetheless successful in winning some significant new customer accounts during the review period. The weaker market situation was also evident as lower transaction volumes in the business of Itella Information. The services under the scope of the universal service obligation accounted for 6.1 percent of Itella Group's net sales during the second quarter. 

Electronic substitution presents Itella with a great challenge this decade as letter and magazine volumes, in particular, continue to decline at an increasing speed. Itella is preparing for this change by adjusting its capacity to future demand. To enable future growth, Itella has established a new eCommerce unit, the objective of which is to allocate more resources and expertise in measures aiming to increase our market share in the logistics of online commerce. We are also continuing our investments in the development of parcel deliveries. 

In April, we launched a EUR 100 million performance improvement program for 2013-2014. As part of this program, we sold Itella Bank, increased the efficiency of Group administration, began the outsourcing of ICT operations and started giving increased prominence to sourcing. 

Improving the result of Itella Logistics, which has suffered from declining profits for quite some time now, is one of our key priorities. Enabling profitable growth in the future requires us to carry out significant changes in the entire logistics organization and delivery chain. Positive developments include the growth of business and improved profitability in Russia. 

We anticipate Itella's net sales this year to show growth in comparison to last year. The operating result without non-recurring items is expected to remain at the level of 2012. The operating result for the entire year is expected to be impacted by substantial non-recurring expenses."


Itella's full Interim Report

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

NASDAQ OMX Helsinki 
Key media


January-September 2013, October 30




Itella Group provides solutions for managing information and product flows. Itella operates in the fields of mail communications, logistics, and financial management in Europe and Russia. Net sales in 2012 amounted to EUR 1,947 million. The number of employees is about 27,500. Corporate services are delivered under the Itella brand, while the Posti brand is used for services targeted at consumers in Finland. Further information is available online at