POSTI GROUP CORPORATION’S FINANCIAL STATEMENTS RELEASE, MARCH 1, 2018 AT 10:00 (EET)
The euro-denominated net sales in 2018, excluding possible acquisitions and divestments, are expected to remain on par with 2017. The Group’s adjusted operating result, excluding possible acquisitions and divestments, is expected to remain on par with 2017 or decrease slightly. Capital expenditure, excluding possible acquisitions, is expected to remain on par with 2017.
The Group’s business is characterized by seasonality. Net sales and operating profit in the segments are not accrued evenly over the year. In postal services and consumer parcels, the first and fourth quarters are typically strong, while the second and third quarters are weaker.
The development of exchange rates, especially the ruble exchange rate, may affect the Group’s net sales, result and balance sheet.
Figures in brackets refer to the comparison period, i.e. the same period last year, unless otherwise stated.
“In many ways, 2017 was a significant milestone for Posti on our path of renewal. The Postal Act reforms that entered into force last year promote the goal of extending the life cycle of traditional communication, while the new two-year collective agreement and the reform of early-morning delivery provide long-term stability in a period when the business environment is undergoing a difficult transformation. Our quality program and the renewal measures we implemented during the year lifted the quality in our operations as a whole to a high level. Our performance during the crucial Christmas season was excellent, and we hit daily, weekly and monthly volume records in parcel deliveries.
Last year, we also took significant steps in the development of our businesses and services by updating our strategy. Since 2013, Posti has systematically shifted its focus to our core activities, namely mail and logistics services. The cornerstones of our strategy now consist of four key goals: win e-commerce play, keep mail relevant to customers, renew service culture, and digitally powered to secure your service delivery.
The past year was very encouraging in highlighting how the new strategy presents Posti with broader growth opportunities in parcel and logistics services as the transformation of commerce goes on and consumer behavior continues to change. Strong growth in e-commerce saw us deliver about 37 million parcels in Finland last year, more than ever before. Consumer parcel growth was 12% and international parcel growth was 19%. Another positive sign was the freight volume increasing by 8%. We estimate that the volume of e-commerce will continue to grow in Finland this year by approximately 10%, and we will open new Posti Parcel Lockers to support this growth.
The Group’s net sales increased by 2.5%, driven by parcel and logistics services. Also worth noting was that the adjusted operating result of Mail, Parcel and Logistics Services showed a substantial year-on-year improvement in the fourth quarter. The Group’s adjusted operating result for the full year was EUR 42.4 million.
In spite of the divestment of operations, Posti’s capital expenditure for the year remained high at EUR 73 million. We will continue to invest in digital services, increased automation and improving the competitiveness of our core business. One example of these investments is the new freight terminal in Vantaa. It will be the largest freight terminal in Finland and it is scheduled to be completed in 2018 at a cost of more than EUR 30 million. Relying on its comprehensive delivery and terminal network, Posti will enhance its capacity to provide services to the grocery, consumer goods and food production industries. Acquisitions remain a potential avenue for implementing the strategy, but only if they strengthen the Group’s core business.
We carried out restructuring measures in the OpusCapita segment during the year by divesting the Finance and Accounting Outsourcing business and transferring the sending of documents and invoices as well as OpusCapita’s digitizing operations in Finland to Posti’s Mail, Parcel and Logistics Services segment. OpusCapita will focus on global solutions for sourcing, payment and cash management.
In the Itella Russia segment, we will continue to increase operational efficiency in order to improve profitability. Itella Russia is moving in the right direction, with net sales increasing by 5% in October–December and adjusted EBITDA amounting to EUR 1.6 million.
I would like to thank all of our customers and partners for their trust in Posti. A warm thank to our employees for their strong performance and important work to ensure a smoother everyday life for our customers. We are working together with our personnel on the renewal of our service culture, which will further improve our customer experience as well as our employee experience.”
Posti Group’s Financial Statements Release in full (PDF)
Heikki Malinen, President and CEO, and Sari Helander, CFO
Tel. +358 20 452 3366 (MediaDesk)
Financial statements for 2017: March 1, 2018, at 10:00 a.m.
January–March: Thursday, May 3, at 9:00 a.m.
January–June: Wednesday, July 25, at 9:00 a.m.
January–September: Wednesday, October 24, at 9:00 a.m.
NASDAQ OMX Helsinki
Posti is a service provider that delivers the smartest and most customer-focused postal and logistics services in the market. Posti is expanding into new service areas and playing an increasingly significant role in the daily life of its customers. We operate in 11 countries, our net sales in 2017 amounted to EUR 1,600 million and the number of our personnel is approximately 20,000. Our businesses also include the logistics service provider Itella Russia and the electronic business specialist OpusCapita. www.posti.com.