POSTI GROUP CORPORATION'S FINANCIAL STATEMENTS RELEASE, FEBRUARY 13, 2015 AT 10:00 A.M. (EET)
Posti Group Corporation's Financial Statements and Board of Directors' Report for 2014
|Key figures of Posti Group|
|Net sales, EUR million||491.7||528.8||1,858.7||1,976.8|
|Operating result (non-IFRS), EUR million*||23.5||26.3||50.8||50.5|
|Operating result (non-IFRS), %*||4.8||5.0||2.7||2.6|
|Operating result (EBIT), EUR million||10.9||12.3||5.8||9.9|
|Operating result (EBIT), %||2.2||2.3||0.3||0.5|
|Result before taxes, EUR million||7.6||9.6||-4.6||-2.4|
|Result for the period, EUR million||4.5||17.6||-4.4||7.7|
|Return on equity (12 months), %||-0.7||1.1|
|Return on invested capital (12 months), %||1.0||1.3|
|Equity ratio, %||45.9||47.5|
|Gross capital expenditure, EUR million||14.6||19.8||57.5||61.1|
|Average number of employees||24,617||27,253|
*) Non-IFRS = excluding non-recurring items
Heikki Malinen, President and CEO:
"In 2014, we implemented our new strategy systematically. Its key goal is to transform our company into a modern, customer-oriented and high-quality postal and logistics service provider. A part of this renewal process was the changing of Itella's name to Posti at the beginning of this year. I am very pleased that the name change has received such positive feedback from the public and our customers. The name change has proved to be the right decision.
During the past year, accelerating digitization affected the Group's operations more profoundly than ever before. The total volume of addressed letter items declined by 10% and that of newspapers by 13%. In the next few years, the transformation of communications and the postal industry will continue and be at least as challenging as it is at the moment. If letter and publication delivery volumes decrease at the pace of 10% per year, it will mean at least EUR 60 million of lost net sales for Posti annually.
Digitization also offers Posti new growth opportunities. Thanks to increasing e-commerce, we delivered a record-breaking number of parcels, nearly 33 million, last year. The number of users of the electronic mailbox Netposti increased by 10% to nearly 600,000. Digitization also benefits OpusCapita, a provider of financial accounting outsourcing services and automation solutions, as electronic invoices and cloud services related to financial accounting automation, which form part of its offering, are growing strongly. Indeed, OpusCapita is an important cornerstone for Posti's strategy, which looks ahead to 2020.
The Group's non-IFRS operating result improved to EUR 50.8 million. The structural changes and adjustments carried out during the year increased non-recurring items, which decreased the operating result from the previous year. In Mail Communications, the result remained good, thanks to savings, efficiency improvement measures and price increases. In Logistics, net sales decreased by 8.7%. The decrease was due to the very difficult market situation and intense competition in logistics and trade.
A positive highlight is Itella Russia, which achieved a profitable result in an extremely challenging market situation. Itella Russia's euro-denominated net sales declined due to the substantial depreciation of the ruble. However, this year is becoming a difficult one as the Russian economy is sliding into recession. The weak ruble, the decreasing oil price and sanctions affect the Russian economy and consumer purchasing power negatively, which decreases demand for logistics services.
Last year, adjustment to the transformation of the postal industry and logistics required, unfortunately, the Group to make extensive personnel reductions that were carried out in as responsible and controlled manner as possible. Through the Uusi polku (New path) program, we have supported the personnel financially and offered retraining coaching.
In Logistics, we also took extensive efficiency improvement measures and eliminated highly unprofitable operations in Scandinavia, for example. Logistics managed to improve its result, although the operating result still showed a clear loss. Continued economic recession has made a fast turnaround more difficult. Efficiency improvement measures will be continued with a new program aiming to ensure the Group's profitability through the recession. We are focusing on our core business operations instead of expansion."
Financial Statements Release and the Board of Directors' Report (PDF)
Corporate Governance Statement 2014 (PDF)
Heikki Malinen, President and CEO, and Sari Helander, CFO
Tel. +358 20 452 3366 (MediaDesk)
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FINANCIAL CALENDAR IN 2015
Interim Report Q1/2013, April 30
Interim Report Q2/2013, July 17
Interim Report Q3/2014, November 2
IMAGES AND LOGOS
Posti Group is your first choice in postal, logistics and e-commerce services. We manage the flow of commerce and everyday life in 11 countries. Our net sales in 2014 amounted to EUR 1,859 million. We employ approximately 23,000 professionals who serve our customers in Finland under the name Posti and in other countries under the name Itella. www.posti.com.Posti_Group_Financial_Statements_Release_and_the_Board_of_Directors_Re Posti_Group_Corporate_Governance_Statement_2014.pdf