Posti results: Strong profitability, although net sales declined

Posti Group Corporation has published its half year financial report – January–June 2024. 

Unless otherwise stated, the figures in brackets refer to the corresponding period in the previous year.

April-June
Financial highlights 

• Net sales decreased by 2.3% to EUR 377.8 (386.5) million
• Adjusted EBITDA increased to EUR 49.5 (38.0) million, or 13.1% (9.8%) of net sales
• EBITDA increased to EUR 44.0 (36.3) million, or 11.7% (9.4%) of net sales
• Adjusted operating result increased to EUR 17.9 (5.3) million, representing 4.7% (1.4%) of net sales 
• Operating result increased to EUR 12.4 (3.5) million, representing 3.3% (0.9%) of net sales

January-June
Financial highlights 

• Net sales decreased by 3.1% to EUR 759.9 (784.1) million
• Adjusted EBITDA increased to EUR 102.5 (80.5) million, or 13.5% (10.3%) of net sales
• EBITDA increased to EUR 94.0 (77.9) million, or 12.4% (9.9%) of net sales
• Adjusted operating result increased to EUR 39.1 (14.9) million, representing 5.1% (1.9%) of net sales
• Operating result increased to EUR 30.5 (12.3) million, representing 4.0% (1.6%) of net sales
• Net debt to adjusted EBITDA was 1.2x (1.3x)

Operational highlights in Q2

• Group net sales decreased. Weak customer demand affected especially Fulfilment and Logistics Services warehouse volumes negatively and consequently decreased net sales.
• The Group’s adjusted EBITDA and operating result improved significantly. Continuous improvements in cost and operational efficiency, especially in the eCommerce and Delivery Services and Postal Services segments increased the share of the Group’s adjusted EBITDA of net sales to a high level. 
• In the eCommerce and Delivery Services segment, the total parcel volume grew by 5% (1%). This was driven by the improved e-commerce volumes in Finland and in the Baltic countries.
• The addressed letter volumes continued to decrease by 10% (8%). 
  • The share of mail items covered by the universal service obligation accounted for 2.6% (2.3%) of all Posti’s mail items delivered.

Outlook for 2024 unchanged

In 2024, Posti is expecting its net sales and adjusted EBITDA to be on the previous year’s level. In 2023, Posti’s net sales were EUR 1,586.1 million and adjusted EBITDA was EUR 197.7 million. 

Current macroeconomic and market conditions bring uncertainty to economic projection and consumer confidence. Consumer behaviour affects Posti’s business and may further impact our 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.

Timo Karppinen, Interim CEO commented: “We again delivered strong profitability during the first half of 2024, which I’m proud to say is our best result in the past 10 years. We were prompt to respond to a declining market demand, and our long-term efforts in improving operational efficiency as well as prudent cost management are now bearing fruit. For this, I would like to thank every Posti employee.”