Poste Italiane expects operating profit to rise to €2.2 billion euros by 2024

The Board of Directors of Poste Italiane S.p.A  chaired by Maria Bianca Farina, have approved a four-year strategic plan which will see operating profit further improve from €1.5 billion to €2.2 billion by the end of the plan, supported by revenue growth and cost discipline in all business segments.

The plan, named ‘2024 Sustain and Innovate’ will continue to deliver co-ordinated growth opportunities in all of Poste italiane’s business segments.

With execution underpinned by long-term strategic vision, the Group aims to:

• confirm Poste Italiane’s role as a strategic pillar for Italy. Poste Italiane continues to play a vital role in Italy’s vaccination plan
• deliver responsible growth and drive Italy’s sustainability and social integrity, with a strategy structured along 8 pillars and in full alignment with UNSDGs
• drive the accelerated shift towards digital and third party-network channels
• evolve the logistic network throughout the value chain, to capture the full growth potential coming from the growing parcel market. By 2025 over 50% of revenues in the Mail & Parcel segment will come from the parcel business (20% in 2017)
• achieve customer portfolio diversification across savings, insurance and investment products, building on the position as the preferred financial partner, through a state-of-the-art, data-driven technology platform while becoming fully omnichannel
• keep payments as the core and uniquely build on the telco business with the intention of engaging with customers towards more value-added services such as the energy product offer in early 2022

‘2024 Sustain & Innovate’ has pragmatic and achievable financial targets and clearly defined KPIs, including mid-plan objectives.

Commenting on the new plan, Matteo Del Fante, Chief Executive Officer and General Manager, said: “With our ‘24 Sustain & Innovate’ (‘24SI’) Plan, we are able to build and grow on the solid foundations put in place with Deliver22 with achievable targets across all our four businesses. Revenues will grow steadily throughout the plan, with EBIT and Net Profit increasing 5% and 6% CAGR respectively, generating €0.4 billion of incremental EBIT between 2019 and 2024. After a step up of 14% in 2021, the dividend per share will benefit from a 6% annual growth. The turnaround in mail and parcels is fully underway and it is the first time parcels will represent a higher revenue proportion than mail, while we will become a fully-fledged logistics player with a sustainable business. In financial and insurance services, the priority is to become the main reference point for all customers’ needs, from savings to insurance and loans, attracting them with data driven advisory across all Poste’s distribution channels. We will leverage cross and up selling expertise in Payments & Mobile, confirming the leadership in digital payments, introducing broadband connectivity and entering the power and gas market in 2022 with a fair, competitive and customer friendly offering.

Our strategic foresight in creating a cloud-based architecture, leads the Group to be Italy’s number one cloud services user. We are delivering new products and services that will help our customers, businesses, the Public Administration and the country as a whole for years to come, with the commitment in creating significant value for all stakeholders.
Confirming the relevance of the environmental topics for our strategy, Poste Italiane will become a net zero emission company by 2030.

Our people have proved to be a cornerstone of our success and we will continue to invest in their skills. We are proud of our key role in the countrywide vaccination plan, with about 2 million vaccine doses already delivered supporting the Italian Army’s operations thanks to our cloud native technological platform.
The ’24SI’ plan transforms challenges into opportunities thanks to the robustness and flexibility of our strategic approach to business. We will confirm with a ‘yes’ our promise to achieve our 2024 targets.

Poste Italiane is the Italy’s most valuable engine of innovation and digitalisation, linking customers, citizens, businesses and the Public Administration physically and digitally.”nts by 6% a year up to 2024, starting from a floor of 0.55 euros to be paid on 2021 results, up 14% from 2020.

Poste Italiane said its mail and parcels division would turn into a “profitable logistics player” by 2025, when revenues from parcels operations would exceed general mail.

“The turnaround in mail and parcels is fully under way … we will become a fully-fledged logistics player with a sustainable business,” Chief Executive Matteo Del Fante said in a statement.

The smaller payments and mobile division is expected to more than double revenue by 2024, helped by value-added services such as energy products to be offered in early 2022, the group said.

The group also expects increased demand for its insurance services, supported by health and property protection after the COVID-19 pandemic.

Its financial services division, however, is projected to register a drop in the operating profit in 2024, reflecting higher costs.