Posti Group Corporation Financial Statements Bulletin January–December 2021
Unless otherwise stated, the figures in brackets refer to the corresponding period in the previous year.
In 2022, Posti is expecting its net sales to remain at the previous year’s level. The Group’s adjusted EBITDA in 2022 is expected to decrease from the previous year. In 2021, Posti’s net sales from continuing operations were EUR 1,595.0 million and adjusted EBITDA was EUR 181.6 million.
The potential continuing inflation and the increase in interest rates may impact consumer demand. The changes in consumer behavior affect Posti's business and could impact our 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.
|
10-12 2021 |
10-12 2020 |
1-12 2021 |
1-12 2020 |
||
Net sales*, EUR million |
444.2 |
441.8 |
1,595.0 |
1,555.4 |
||
Adjusted EBITDA*, EUR million |
50.3 |
60.8 |
181.6 |
173.5 |
||
Adjusted EBITDA margin*, % |
11.3% |
13.8% |
11.4% |
11.2% |
||
EBITDA*, EUR million |
50.1 |
57.0 |
180.5 |
165.7 |
||
EBITDA margin*, % |
11.3% |
12.9% |
11.3% |
10.7% |
||
Adjusted operating result*, EUR million |
18.7 |
31.4 |
59.8 |
60.5 |
||
Adjusted operating result margin*, % |
4.2% |
7.1% |
3.7% |
3.9% |
||
Operating result*, EUR million |
14.8 |
27.6 |
55.0 |
50.5 |
||
Operating result margin*, % |
3.3% |
6.2% |
3.4% |
3.2% |
||
Result for the period*, EUR million |
10.2 |
20.0 |
38.7 |
25.9 |
||
Return on capital employed (12 months)*, % |
|
|
8.4% |
7.7% |
||
Net debt, EUR million |
|
|
145.0 |
228.7 |
||
Net debt / adjusted EBITDA* |
|
|
0.8x |
1.3x |
||
Operative free cash flow, EUR million |
|
|
23.1 |
77.6 |
||
Personnel, end of period* |
|
|
21,128 |
19,902 |
||
Personnel on average*, FTE |
15,316 |
15,108 |
15,042 |
15,113 |
||
Earnings per share, continuing operations, EUR |
0.26 |
0.50 |
0.97 |
0.65 |
||
Earnings per share, basic, EUR*** |
-1.23 |
0.45 |
-0.40 |
0.74 |
||
Dividend per share, EUR |
|
|
0.80** |
0.78 |
||
Dividend, EUR million |
|
|
32.0** |
31.3 |
||
|
|
|
|
|
||
* Continuing operations – the results of Itella Russia presented as discontinued operations. ** Board of Directors' proposal to the Annual General Meeting.
|
At the beginning of 2021, we introduced our revised strategy. Despite the challenging circumstances, the execution of our strategy has had an excellent start which is reflected in our last year’s results.
Our net sales in 2021 grew by 2.5% to EUR 1,595.0 million and the development of our profitability was strong. Our adjusted EBITDA grew by 4.7% from last year, driven by the increased net sales and operational efficiency, and it represented 11.4% of net sales. The net sales of Postal services continued to decline with the decreasing volumes, but the growing customer demand for parcel and logistics services drew the growth of our net sales. The overall logistics volumes were high as the positive market development after the logistics high season continued throughout the year.
Although we can be very pleased with the full-year result in 2021, the altering market situation was visible in the fourth quarter result. Parcel volume growth has leveled off and extremely strong growth rates similar to the ones we saw in the earlier stages of the pandemic are not in sight in the very near future. Our profitability in the fourth quarter was affected by the general shortage of workforce, increased energy prices, and absences due to the COVID-19 virus that required overtime hours and temporary workforce. Our adjusted result in the fourth quarter also included a non-recurring expense resulting from Posti’s re-assessment of calculation method related to VAT-exempt activities.
Year 2021 was important for streamlining our operations around the core of our business and future growth. The engine of the growth is the parcels and logistics services in Finland, Sweden, and the Baltics, along the entire delivery and fulfillment value chain.
In addition to seeking organic growth, we also aim to grow through acquisitions as we believe the M&A front offers us opportunities to strengthen our capabilities, and to actively participate in the rapid logistics market development. The divestment of the Itella Russia operations in December 2021 was one important step that allows us to focus on growth according to our strategy. This year started with an acquisition of the Swedish logistics company Veddestagruppen, which will be integrated into Aditro Logistics. Aditro Logistics is a forerunner of delivery and fulfillment services in Sweden, and the acquisition accelerates our transition into a stronger fulfillment player within eCommerce.
Looking ahead to this year, the overall situation poses many questions. In 2021, inflation accelerated, and we can expect this to continue to affect consumption also this year. Uncertainties related to the COVID-19 pandemic remain, and the situation can change quickly, as we have seen before. The infections are estimated to keep causing absences from work, while we already have a constant need for new employees.
With the changing circumstances, our success depends on our customer-centricity and on our ability to work together towards our joint goals at Posti. My confidence in our people and organization is strong, and I have no doubts that we are moving in the right direction. We continue to develop our services and our vast investment program in line with our strategic focus area of delivery and fullfilment.
I would like to thank all Posti employees for their work and flexibility during the past year, which was again exceptional and demanding. I am confident that this strong performance will also continue this year. Our strategy brings us clarity and direction, and by continuing its systematic execution, we have all the ingredients for success.
APPENDICES
Posti Group’s Financial Statement bulletin January-December 2021 in full (PDF)