Inpost CEO: 2023 marked a significant breakthrough for us in the UK
InPost Group publishes the Q4 & FY 2023 results revealing another year of strong performance on all key metrics and profitability enhancement.
Integrated Annual Report 2023 is available at: https://inpost.eu/investors/integrated-annual-report.
Executive summary Q4 2023
- UK improved profitability: In the UK, InPost successfully delivered 17.2 million parcels in Q4 2023 (+169% YoY). The UK recorded another profitable quarter on the Adjusted EBITDA level, totalling PLN 21.6 million (12.4% adjusted EBITDA margin vs 9% in Q3 2023) thanks to: i) a favourable product mix, ii) unlocking volume growth and iii) continuous network coverage improvement.
- Group volume increase: In Q4 2023, the Group parcel volume reached 268.2 million, representing a significant YoY increase of 21%. Both Poland and InPost’s international markets[1] contributed to this growth, recording YoY improvements of 17% and 28%, respectively.
- Group revenue growth: In Q4 2023, the Group delivered another strong revenue growth, reaching PLN 2,659.1 million and marking a 23.7% increase YoY. This was driven by strong volume growth in Poland and the UK as well as the successful implementation of repricing initiatives.
- Significant Adjusted EBITDA increase: Group Adjusted EBITDA reached PLN 846.3 million in Q4 2023, with an increase of 44.5% YoY, and an Adjusted EBITDA margin of 31.8%. Group EBIT was up by 79.1% YoY, and EBIT margin rose to 19.3% in Q4 2023 vs 13.4% a year earlier. In Q4 2023, for the first time ever, all of our key markets contributed positively to Adjusted EBITDA.
- Positive Free Cash Flow and further deleverage: In Q4 2023, InPost achieved positive Free Cash Flow (FCF) of PLN 243.2 million at the Group level. In Poland, FCF amounted to PLN 391.8 million, corresponding to a 53% FCF/Adjusted EBITDA conversion, which allows for financing the Group’s rapid expansion in Europe. At the same time, the Group’s net leverage decreased to 2.2x as of Q4 2023 compared to 3.2x as of Q4 2022.
- Poland volumes exceeding market growth: In Poland, during Q4 2023, InPost volumes reached 175.4 million parcels, 17% YoY, exceeding the pace of e-commerce market volume, which was 12%[2].
- Mondial Relay strong B2C growth: Mondial Relay showed a 9% YoY growth in volumes during Q4 2023, which was primarily driven by a notable 31% YoY improvement in the B2C segment, aligning with the Group’s strategic objectives. Strong control over logistics costs and last mile savings enabled an adjusted EBITDA margin improvement YoY to 12.6% (from 11.1% a year earlier).
- 2024 outlook: Expect to exceed market growth in all geographies, FY expected to be profitable in all our key markets[3] on the Adjusted EBITDA level. Group revenue growth expected above volume growth and Group Adjusted EBITDA expected to increase in line with revenue. See the full FY 2024 outlook below.
Rafał Brzoska, Founder and CEO of InPost Group, commented: “2023 turned out to be another great year for InPost! We achieved new records in volumes, financial results and, most importantly, we delivered on our key strategic priorities. Despite the challenging e-commerce market landscape, our growth continuous to exceed market growth in key geographies, thereby proving the strength and superior value proposition of our business. With over 66,000 points across Europe, we are the leading out-of-home network. Remaining the locker leader in Poland, we claimed the top position in the UK last year and recently secured the #1 APM network spot in France[4].
In our domestic market, Poland, we are now reaping the rewards for our long-term investments in logistics, commitment to quality and relentless pursuit of excellence in our user experience. Last year’s peak once again proved that InPost is the most reliable and preferred partner for customers and merchants.
Mondial Relay, operated in a particularly challenging market environment in 2023, not only outgrew market, but also delivered a significant step up of B2C volumes by 23% year-on-year. Mondial Relay is at the beginning of its journey of gaining scale, improving quality and expanding the network while already being a robust and healthy business. We cannot wait to see how this journey evolves.
The year 2023 marked a significant breakthrough for us in the UK. We now have a much better and more scalable logistics solution. As a result, we unlocked volume growth and became EBITDA profitable. Now, it is time to expedite the Group’s network expansion by concentrating on our strengths: consumer experience and quality.
I am also proud of the progress we made in the implementation of our ESG commitments. InPost has pledged to achieve NET-ZERO status before 2040, setting an industry-leading standard. Our APMs provide for a green and efficient parcel delivery and with high network density we generate up to 98%[5] lower carbon emissions delivering to our lockers vs to-door in the last mile. Our efforts and ESG strategy have increasingly been widely recognised inter alia through the inclusion of InPost in the Euronext index -AEX ESG index.
Looking ahead, we remain optimistic and the entire InPost team is confident in achieving our strategic plans. Let’s keep the momentum going!”