Posti Group Corporation Interim Report January–September 2022
Unless otherwise stated, the figures in brackets refer to the corresponding period in the previous year.
July–September
Financial highlights
Net sales grew by 5.6% to EUR 395.6 (374.8) million.
Adjusted EBITDA increased to EUR 44.3 (42.6) million, or 11.2% (11.4%) of net sales.
EBITDA increased to EUR 43.7 (42.0) million, or 11.0% (11.2%) of net sales.
Adjusted operating result increased to EUR 13.0 (12.5) million, representing 3.3% (3.3%) of net sales.
Operating result increased to EUR 12.4 (12.0) million, representing 3.1% (3.2%) of net sales.
January–September
Financial highlights
Net sales grew by 4.1% to EUR 1,198.0 (1,150.8) million.
Adjusted EBITDA decreased to EUR 120.3 (131.3) million, or 10.0% (11.4%) of net sales.
EBITDA decreased to EUR 117.0 (130.4) million, or 9.8% (11.3%) of net sales.
Adjusted operating result decreased to EUR 28.1 (41.1) million, representing 2.3% (3.6%) of net sales.
Operating result decreased to EUR 24.7 (40.1) million, representing 2.1% (3.5%) of net sales.
Net debt to adjusted EBITDA was 1.5x (1.3x).
Operational highlights in Q3
Despite the very challenging operating environment net sales grew across all segments. Growth was organic but supported by acquisitions and price increases. Also, the Group’s profitability increased.
eCommerce and Delivery Services profitability increased significantly, albeit total parcel volumes decreased by 6% (increased by 13%) in Finland and the Baltic countries.
Fulfillment and Logistics Services net sales increased by 10.3% and were mainly driven by the acquisition of Veddestagruppen.
The combined external net sales of eCommerce and Delivery Services, and Fulfillment and Logistics Services represented 64.6% (64.2%) of the Group’s net sales.
The addressed letters volume in general continued to decrease. However, Posti’s addressed mail volumes increased exceptionally by 5% (decreased 8%) due to new volumes from the acquired Keskisuomalainen Oyj early-morning delivery operations.
The share of mail items covered by the universal service obligation accounted for 2.3% (2.0%) of all Posti’s mail items delivered.
Posti decided on a new green technology vehicle 2030 roadmap, which includes a plan over two thousand new electric, biogas, and hydrogen vehicles. New vehicles will be gradually replacing the current fleet during the next eight years.
Outlook for 2022
Outlook for 2022 remains unchanged.
In 2022, Posti is expecting its net sales to increase from the previous year. The Group’s adjusted EBITDA in 2022 is expected to decrease. Posti’s net sales from continuing operations in 2021 were EUR 1,595.0 million and adjusted EBITDA was EUR 181.6 million.
The potentially continuing inflation and the increase in interest rates may impact consumer demand. The changes in consumer behavior affect Posti's business and could impact actual results.
The Group’s business is characterized by seasonality. The net sales and operating result 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 service volume decline is expected to continue.