Posti Group Corporation Half-Year Financial Report January–June 2020
April–June
Financial highlights
Net sales were at the previous year’s level, EUR 392.3 (393.8) million.
Adjusted EBITDA was EUR 34.5 (37.3) million, or 8.8% (9.5%) of net sales.
EBITDA increased to EUR 34.2 (32.4) million, or 8.7% (8.2%) of net sales.
The adjusted operating result decreased to EUR 3.1 (8.1) million, representing 0.8% (2.1%) of net sales.
The operating result decreased to EUR 0.6 (3.2) million, representing 0.2% (0.8%) of net sales.
The figures in 4-6/2020 and 4-6/2019 are not fully comparable because the operations of Aditro Logistics have been included in Posti’s financials as of April 2020, but they are not part of the financials of the comparable period in 2019.
January–June
Financial highlights
Net sales decreased by 1.8% to EUR 776.5 (790.4) million.
Adjusted EBITDA was EUR 75.2 (77.9) million, or 9.7% (9.9%) of net sales.
EBITDA increased to EUR 74.4 (68.8) million, or 9.6% (8.7%) of net sales.
The adjusted operating result decreased to EUR 15.6 (20.3) million, representing 2.0% (2.6%) of net sales.
The operating result improved to EUR 12.5 (11.2) million, representing 1.6% (1.4%) of net sales.
Net debt to adjusted EBITDA was 2.0x (1.1x).
Operational highlights
The global COVID-19 pandemic began to impact on Posti’s operations in March. Posti’s Parcel and eCommerce business group benefited from the growth of online shopping, while the demand for traditional postal services decreased even faster than previously due to the pandemic.
The execution of Posti’s transformation continued: The combined net sales of Parcel and eCommerce as well as logistics businesses represented already 56% (51%) of the Group’s net sales. The parcel volume of Finland and the Baltic countries increased by 19% (8%). At the same time, the number of addressed letters decreased by 20% (14%) in Finland. The share of mail items covered by the universal service obligation continued to decrease and accounted for only 2.7% (3.4%) of all Posti’s mail items delivered. On April 2, Posti closed the acquisition of Aditro Logistics, a Swedish contract logistics company. The acquisition was in line with Posti’s ambition of expanding its geographical footprint.
The figures in 1-6/2020 and 1-6/2019 are not fully comparable because the operations of Aditro Logistics have been included in Posti’s financials as of April 2020, but they are not part of the financials of the comparable period in 2019.
Outlook for 2020 (unchanged)
The coronavirus situation makes the macro economic outlook extremely difficult to predict for the full year. Posti maintains its outlook for 2020, but because of these exceptional circumstances, Posti’s full-year outlook includes a significant level of uncertainty.
As a result of the increasing market uncertainty and expected impact of coronavirus on the Finnish and global economy, Posti’s net sales in 2020, excluding possible new acquisitions and divestments, are expected to decrease from the previous year. The Group’s adjusted operating result in 2020 is expected to increase from the previous year, when the postal strike had a significant negative impact on Posti’s results.
The Group’s business is characterized by seasonality. Net sales and operating result in the segments are not accrued evenly over the year. In Postal Services and consumer parcels, the first and fourth quarters are typically strong, while the second and third quarters are weaker.