Posti Group Corporation Half-Year Financial Report January–June 2023
Unless otherwise stated, the figures in brackets refer to the corresponding period in the previous year.
April-June
Financial highlights
Net sales decreased by 6.0% to EUR 386.5 (411.3) million.
Adjusted EBITDA decreased to EUR 38.0 (39.5) million, or 9.8% (9.6%) of net sales.
EBITDA decreased to EUR 36.3 (38.9) million, or 9.4% (9.5%) of net sales.
Adjusted operating result decreased to EUR 5.3 (8.5) million, representing 1.4% (2.1%) of net sales.
Operating result decreased to EUR 3.5 (7.9) million, representing 0.9% (1.9%) of net sales.
January-June
Financial highlights
Net sales decreased by 2.3% to EUR 784.1 (802.4) million.
Adjusted EBITDA increased to EUR 80.5 (76.0) million, or 10.3% (9.5%) of net sales.
EBITDA increased to EUR 77.9 (73.3) million, or 9.9% (9.1%) of net sales.
Adjusted operating result remained at the level of the comparison period at EUR 14.9 (15.0) million, representing 1.9% (1.9%) of net sales.
Operating result remained at the level of the comparison period at EUR 12.3 (12.3) million, representing 1.6% (1.5%) of net sales.
Net debt to adjusted EBITDA was 1.3x (1.4x).
Operational highlights in Q2
Improved operational efficiency across all segments helped to maintain the Group’s overall profitability.
High interest rates and inflation lowered consumer purchasing power, particularly in Sweden, which impacted eCommerce and Delivery Services and Fulfillment and Logistics Services volumes and net sales negatively.
In eCommerce and Delivery Services segment, the total parcel volume in Finland and the Baltic countries increased by 1% (decreased by 6%). Despite the total parcel volume growth, the main product categories in the main market continued to decline due to the challenging market environment.
The number of addressed letters returned to a declining trend (decreased by 8%). Exceptional amount of addressed letters sent by the public sector in Finland increased the volumes in Q1 .
The share of mail items covered by the universal service obligation accounted for 2.3% (2.1%) of all Posti’s mail items delivered.
Outlook for 2023
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.