bpost Q4 2018 results: solid parcels growth despite strike action
Belgium Post (bpost) has announced its financial results for the fourth quarter 2018.
bpost’s total operating income was EUR 1,131.6 million (+18.5%) driven by acquisitions, strong organic domestic and international parcels growth and nearly stable domestic mail revenues.
The company has seen strong Domestic Parcels volumes growth at +15.8% (+23.3% for the full year), driven by strong e-commerce but impacted by strikes.
Additional Sources of Revenues increased with EUR 33.5 million driven by the acquisitions of Imex and M.A.I.L., Inc. in International Mail.
Domestic Mail underlying volume evolution at -6.2% (-5.8% for the year 2018) impacted by continued e-substitution, rationalisation and competitive advertising market.
Logistic Solutions up EUR 117.0 million, driven by the consolidation of leading provider of integrated e-commerce logistics Radial (EUR +111.6 million).
EBITDA up EUR 55.0 million to EUR 206.4 million. Back-end loaded EBITDA generation as planned.
Net profit of bpost SA/NV (BGAAP) for the full year came in at EUR 262.3 million.
Koen Van Gerven, CEO, commented: “2018 results are in line with our expectations as expressed at our Capital Markets Day in June and reiterated since. We have delivered on our promises with a full year EBITDA in line with guidance, the contribution from Radial as anticipated and a dividend payment of 1.31 euro per share. I’m therefore very grateful to all employees in Belgium and abroad.
“Our guidance was achieved thanks to a back-end loaded EBITDA generation during a seasonally strong fourth quarter, which benefitted from solid organic parcels growth, both domestically and internationally, despite a negative impact from strike actions. Radial delivered a successful end of year peak and group organic costs decreased over the quarter. We also ended the year positively with the conclusion of an important agreement for the well-being of our workers.”
“Our 2022 vision is clear: we become, beyond mail, an efficient global e-commerce logistics player anchored in Belgium. Over 2018, we have made important progress towards this goal by implementing a real Business Unit structure to bring dedicated focus on the three key challenges of the company, being mail volume decline, parcels growth and Radial. We have already observed visible signs of improvement at Radial with increased client satisfaction, reduction in churn and important contract renewals. 2019 will be another important year on our trajectory with the accelerated preparation of our modified distribution model. This preparatory work will first weigh on results before we can reap the benefits. At the same time, we will have to cope with mounting cost pressure. I am convinced though that backed by the daily commitment of our employees, we can take our long-standing track record of successful transformation a step further. ”