Unless otherwise stated, the figures in brackets refer to the corresponding period in the previous year.
Posti is adjusting its outlook for 2023. Net sales are expected to decrease (previously it was communicated that net sales are expected to increase). The new outlook states:
In 2023, Posti is expecting its net sales to decrease from the previous year. The Group’s adjusted EBITDA in 2023 is expected to decrease from the previous year. In 2022, Posti’s net sales from continuing operations were EUR 1,651.6 million and adjusted EBITDA was EUR 183.8 million.
The continuing inflation and the increase in interest rates is impacting consumer demand. The changes in consumer behavior affect Posti's business and may further impact actual results.
The Group’s business is characterized by seasonality. The net sales and adjusted EBITDA 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 volume decline is expected to continue.
Key figures of Posti Group |
||||||
|
|
|
4-6 2023 |
4-6 2022 |
1-6 2023 |
1-6 2022 |
1-12 2022 |
|
Net sales, EUR million |
|
386.5 |
411.3 |
784.1 |
802.4 |
1,651.6 |
|
Adjusted EBITDA, EUR million |
38.0 |
39.5 |
80.5 |
76.0 |
183.8 |
|
|
Adjusted EBITDA margin, % |
|
9.8% |
9.6% |
10.3% |
9.5% |
11.1% |
|
EBITDA, EUR million |
36.3 |
38.9 |
77.9 |
73.3 |
178.2 |
|
|
EBITDA margin, % |
|
9.4% |
9.5% |
9.9% |
9.1% |
10.8% |
|
Adjusted operating result, EUR million |
5.3 |
8.5 |
14.9 |
15.0 |
58.9 |
|
|
Adjusted operating result margin, % |
|
1.4% |
2.1% |
1.9% |
1.9% |
3.6% |
|
Operating result, EUR million |
3.5 |
7.9 |
12.3 |
12.3 |
51.0 |
|
|
Operating result margin, % |
|
0.9% |
1.9% |
1.6% |
1.5% |
3.1% |
|
Result for the period, EUR million |
0.7 |
4.6 |
5.6 |
5.6 |
31.7 |
|
|
Return on capital employed (12 months), % |
|
|
7.4% |
5.7% |
7.8% |
|
|
Net debt, EUR million |
|
250.0 |
241.2 |
208.5 |
||
|
Net debt / adjusted EBITDA |
|
|
|
1.3x |
1.4x |
1.1x |
|
Operative free cash flow, EUR million |
|
-14.3 |
-16.2 |
28.5 |
||
|
Personnel, end of period |
|
|
|
19,515 |
21,133 |
19,996 |
|
Personnel on average, FTE |
|
14,752 |
15,213 |
14,549 |
14,951 |
14,985 |
|
Earnings per share, basic, EUR |
|
0.02 |
0.11 |
0.14 |
0.14 |
0.79 |
|
Dividend per share, EUR |
|
|
|
|
|
0.79 |
|
Dividend, EUR million |
|
|
|
|
|
31.7 |
Regardless of the demanding operating environment, we succeeded in improving operational efficiency across all segments, which resulted Group’s profitability to improve in the first half. In the second quarter, the lowered consumer demand led to declined net sales and results. However, I am pleased how the whole Posti team went the extra mile and quickly reacted and adjusted to the changing market conditions.
Inflation peaked and interest rates continued to rise during the first half. Consumers’ purchasing power lowered and behavior changed, which impacted Posti’s volumes negatively. Group net sales decreased by 2.3% to EUR 784.1 (802.4) million, whereas adjusted EBITDA increased to EUR 80.5 (76.0) million in the first half. In the second quarter we continued to focus on advancing our operational efficiency. The Group’s net sales decreased by 6.0% to EUR 386.5 (411.3) million and adjusted EBITDA decreased to EUR 38.0 (39.5) million.
In the first half, eCommerce and Delivery Services net sales and profitability decreased due to the weakened economic situation, and especially low volumes in the parcel and transportation services market in general in the second quarter. In Fulfillment and Logistics Services the net sales decreased, however, profitability increased due to the improved efficiency in operations. Also, the Postal Services profitability increased in the first half, resulting from the continuous improvements in operational efficiency. Exceptional increase in addressed letter volumes in early part of the year, and net sales from Mediatalo Keskisuomalainen early-morning delivery operations, acquired in 2022, added to net sales in Postal Services, which increased from the comparison period.
The market environment is expected to remain demanding, particularly in Sweden. Uncertainties, especially in the B2C market, will continue to shadow the rest of the year and in retail trade, sales expectations for the next months have deteriorated. Rising costs are increasingly impacting consumers’ spending plans, which is influencing the circulation of goods in our warehouses. We continue to seek growth according to our strategy, and we do see the long-term market potential of e-commerce to continue positively in the Nordics.
I am proud that in May we took our first electric semi-trailer truck into use in selected routes in Finland. Posti’s Volvo FM 42T Electric truck is one of the firsts in Finland and the latest addition to our fossil-free transport fleet. It also supports our goal of transporting fossil-free by 2030. This spring we set up a Task Force on Climate-related Financial Disclosures (TCFD) to examine climate risks and opportunities for Posti from the perspectives of technology, supply chain, infrastructure, governance, and sustainable fuels. We will continue this work in the fall by for example, integrating climate risks into our enterprise risk frame.
As we have now entered the second part of the year, we will continue to ensure the efficiency of our operations and to keep customers in our focus. We have started preparations for the peak season and are committed to delivering a successful season period. We will keep on managing costs to ensure that our cost competitiveness supports our growth strategy and long-term goals. Together as the Posti team we need to go the extra mile to achieve this.
Posti Group Corporation Half-Year Financial Report January-June 2023 in full (PDF)
