Austrian Post intensifies its parcel logistics expansion

Austrian Post intensifies its parcel logistics expansion

Austrian Post Group has reported positive revenue development in the first nine months of 2019.

Revenue was up by 3.2 % to EUR 1,462.2 million, parcel growth was up 11.3% to EUR 437.2 million as Austrian Post capitalised on dynamic market growth resulting from the ongoing online shopping trend.

However, the related competitive intensity and price pressure remain high. Parcel revenue growth was driven primarily by the e-commerce trend and the related increase of parcel volumes in Austria.

Against the backdrop of this parcel volume development, Austrian Post is intensifying its parcel logistics capacity expansion drive. Capacities were already substantially increased as of September 2019 when the parcel logistics centre Lower Austria (Hagenbrunn) became fully operational. The next milestones will be the completion of the parcel logistics centre Styria (Kalsdorf) and of the delivery base Thalgau/Salzburg in the middle of next year.

CEO Georg Pölz commented: “The partnership with Deutsche Post DHL Group to deliver parcels in Austria had a very good start. Since 1 August 2019, DHL parcels for Austria are delivered by Austrian Post. As a consequence, total monthly transport and delivery volumes are now about 25% higher than in the previous year.”

“On the back of the high level of liquidity, Austrian Post is in a position to finance on its own targeted growth investments in the logistics infrastructure and new financial services. The generated operating cash flow will continue to be used for investments in the operating business and for maintaining the company’s attractive dividend policy”,

For the full-year 2019, Austrian Post expects an increase in revenue as in previous periods. Based on the good trends in the core business, a stable operating earnings (EBIT) is broadly being targeted, including various start-up costs for setting up the financial services business. This does not include the administrative fine by the Austrian Data Protection Authority. For 2020, Austrian Post also forecasts a stable to slightly higher revenue and plans further broad stability in operating earnings (EBIT). In addition, start-up costs in the process of setting up the new financial services business are expected.

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