bpostgroup CEO: our group results also reflect the effectiveness of our strategy
bpostgroup has published its second quarter 2023 results revealing strong parcels volumes in Belgium and cross-border, along with resilient mail revenues, allow delivery of a solid quarter despite challenging market conditions and impacts of the compliance review.
Second quarter 2023 highlights
- Group operating income at 1,027.6 mEUR, in line with last year (-0.8%).
- Group adjusted EBIT at 68.7 mEUR (margin of 6.7%) down by -16.8%.
- Group reported EBIT at 65.5 mEUR.
- Belgium
- Total operating income at 557.9 mEUR (up by +4.9%).
- Underlying mail volume decline of -8.3% offset by positive price/mix impact.
- Parcels volumes increased by +7.8% and price/mix impact of +5.3%.
- -6.25 mEUR income impact from preliminary findings of compliance review of services provided to the Belgian State (similar to the first quarter 2023).
- OPEX increase (+6.9%) driven by salary indexations and lower recoverable VAT.
- Adjusted EBIT at 56.8 mEUR (10.2% margin) down by -5.9 mEUR (-9.5%) and reported EBIT at 56.7 mEUR. Stable EBIT when excluding compliance review impact.
- E-Logistics Eurasia
- Total operating income at 163.3 mEUR (+15.3%) driven by the continued expansion of Radial EU and Active Ants (+17.9%), Cross-border sales increase supported by recent customer wins in Asia and IMX integration.
- OPEX increase (+13.9%) from higher transport costs in line with volume development, IMX integration and higher payroll costs.
- Adjusted EBIT at 8.9mEUR (5.5% margin), up by +1.8 mEUR (+24.9%). Reported EBIT at 8.1 mEUR (4.9% margin).
- E-Logistics North America
- Total operating income at 330.0 mEUR down by -48.6 mEUR or -12.8% (-10.7% at constant exchange rate), reflecting lower volumes at Radial and Landmark US (Amazon insourcing).
- Lower OPEX (-12.9% or -10.6% at constant exchange rate) from continued strong variable labor management and productivity gains.
- Adjusted EBIT at 11.2 mEUR, down by -6.9 mEUR. Reported EBIT at 9.0 mEUR. EBIT margin dilution from ongoing pressure at Landmark.
- S&P reaffirms the long-& short-term credit rating at A/A-1, outlook stable.
Philippe Dartienne, CEO a.i. of bpostgroup: “I am pleased to report our good set of results of the second quarter, demonstrating our resilience and strength amidst challenging conditions. Besides the dedication and collective effort of all our colleagues, our group results also reflect the effectiveness of our strategy, leveraging our portfolio and geographical diversification. While our operations in Belgium and Eurasia are performing well and ahead of plan, North America currently faces a softer economic environment but our continuous focus on productivity gains is helping us to weather these headwinds.
We are firing on all cylinders and are making good progress on our management priorities set for the year. In Belgium we reached terms with the social partners on a collective labor agreement for 2023-2024, with a focus on the well-being of our people and the attractiveness of jobs in the field. Additionally, we achieved significant milestones in our e-commerce logistics expansion and sustainability endeavors, notably with the opening of a new cutting-edge fulfilment centre in Groningen for Radial Netherlands, the official launch of a state-of-the-art robotized site for Active Ants UK, and the achievement of the symbolic milestone of 1000 e-vans in our domestic fleet.
As we move forward, our focus now turns to the third quarter, awaiting the outcome of the press concession tender and getting a clearer view on the financial impacts of the ongoing compliance review; which will significantly reduce the current uncertainty surrounding the bpostgroup.”