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Itella Corporation's Financial Statements and Board of Directors' Report 2011, FEBRUARY 17, 2012, AT 12:00 NOON (EET)

17.02.2012

ITELLA CORPORATION FINANCIAL STATEMENT RELEASE, FEBRUARY 17, 2012, AT 12:00 NOON (EET)

Itella Corporation's Financial Statements and Board of Directors' Report 2011

 

October-December 2011

 

Year 2011

   

Key figures of Itella Group 2011 2010  2009  
Net sales, MEUR 1,900.1 1,841.6 1,819.7  
Operating result (Non-IFRS), MEUR  *) 30.5 49.6 86.3  
EBIT margin (Non-IFRS), % *) 1.6 2.7 4.7  
Operating result (EBIT), MEUR -5.9 32.4 46.7  
EBIT margin, % -0.3 1.8 2.6  
Result before tax, MEUR -16.4 25.3 19.6  
Return on equity (12 months), % -4.5 1.4 -0.7  
Return on investment (12 months), % -0.2 4.2 5.8  
Equity ratio, % 46.1 50.5 48.5  
Gearing, % 22.1 18.4 19.7  
Gross capital expenditure, MEUR 102.9 89.5 144.9  
Personnel on average 28,493 28,916 30,217  
Dividends, MEUR - 4.4 -  
         
*) Non-IFRS = excluding non-recurring items    

 

 

Jukka Alho, President and CEO:

"Itella now faces a new era. The impact of electronic communications shows especially in the decline of the print media's delivery volumes. For a long time now, we have prepared ourselves for the new competitive situation brought about by the Postal Services Act. The development has required Itella a continuous adaptation. The vital question of how to secure future funding for the universal service obligation remains unsettled. Itella's answer to this question is to develop its practices in accordance with customer needs and the income derived from customers. This involves an increase in the number of modern service outlets, particularly for the needs of e-commerce. However, it is also possible that the government will define service obligations, which need funding from the state.

Traditional postal operations are showing many positive signs as well, such as robust growth in Itella's parcel volumes, arising from the growth of online commerce. Itella's operating result grew during the final quarter of the year. The global financial crisis a couple of years ago still reflects the market, however, and our parcel volumes continue to remain below the levels of peak years. Itella will continue to invest heavily in the promotion and development of electronic services. The latest advancement on this front was the banking license, which, among other advantages, enables the development of solutions for the receiving and payment of e-invoices within Itella's online services.

Itella's profitability weakened and the result was burdened particularly by various non-recurring items regarding for example reduction in the workforce. In addition to that, in Itella Mail Communications the result was negatively affected by a clear reduction in the magazine and letter volumes. All of our business groups are in the process of focusing on their respective core areas of business. During the past few years, the company has been engaged in an active - at times even risky - search for growth. It is now time to review such ventures further and decide which investments show future promise and which ones to abandon. In Finland, for example, we have disposed of a part of Mail Communications' Customer Relationship Marketing activities. Regarding the Information business group, we are in the process of reviewing the operations in Germany. In respect of Itella Logistics, Swedish and Danish operations, in particular, face major challenges related to profitability, which demand systematic improvement measures. While Russian operations are still in need of further improvement, both our market position and operative development is on positive trend. All in all, Itella's current performance is not at a satisfactory level.

Itella's position, however, is sound. Thanks to active investment, we are considered an interesting alternative or, in some cases, the market leader in our chosen business segments in Finland and neighboring areas. The postal and logistics sectors are in the midst of a transition towards a multi-channel service model, one aspect of which involves the growth of online commerce. The standing and competitiveness of Logistics' service warehouses in the Nordic and the Baltic countries, and particularly Russia, is strong. Russia's WTO membership is expected to promote the growth of the logistics market in our operating area. Our Information business group has positioned itself as a unique global provider in demanding outsourcing projects involving financial management.

Even after this period of heavy investment, Itella's solvency remains good and we have been satisfied to note that, despite a difficult year, the operative cash flow of both the entire Group and all of our business groups is clearly in the black. On the basis of this perspective, the company's future outlook is not only challenging, but inspiring."

 

APPENDICES
Itella's Financial Statements Release and the Board of Directors' Report (PDF) 
Corporate Governance Statement 2011
 

FURTHER INFORMATION
Sari Helander, CFO, tel. +358 50 3791 819, sari.helander@itella.com
 

DISTRIBUTION 
NASDAQ OMX Helsinki  
Key media 
http://www.itella.com/about/financials/


FINANCIAL CALENDER 2012

Interim Report Q1/2012 May 3
Interim Report Q2/2012 July 25 
Interim Report Q3/2012 October 31

 

PHOTOGRAPS AND LOGOS 
http://www.itella.com/about/media/

 

 

Itella Group provides solutions for managing information and product flows. Itella operates in the fields of mail communications, logistics, and financial management in Europe and Russia. Net sales in 2011 amounted to EUR 1,900 million. The number of staff is approximately 27 500. Corporate services are delivered under the Itella brand, while the Posti brand is used for services targeted at consumers in Finland. More information is available online at www.itella.com/about.

Itellas_Financial_Statements_Release_and_the_Board_of_Directors_Report Itella_Corporate_Governance_Statement_2011.pdf