Austrian Post needs to address “both revenues and costs to maintain operational stability”

Austrian Post has released its financial figures noting the challenging geopolitical and economic conditions in 2022. High inflation and the war in Ukraine, together with the related energy shortages, affected consumer behaviour.

“Against this backdrop, 2022 was satisfactory with stable revenue of EUR 2,522.0m” states CEO Georg Pölzl and adds: “Although revenue was down by 4.0 % in the first half of the year compared to the very sound half-year figures of the previous year, second half-year revenue increased by 4.2 %.” In the 2022 financial year, revenue in the Mail Division declined from EUR 1,224.2m to EUR 1,218.0m (–0.5 %), with revenue in the Parcel & Logistics Division down from EUR 1,245.7m to EUR 1,214.6m (–2.5 %) and revenue in the Retail & Bank Division increasing from EUR 74.7m to EUR 122.5m (+64.0 %). Revenue in 2022 in the Mail Division was negatively impacted by the structural decline in addressed letter mail and direct mail volumes due to electronic substitution. Special effects for traditional letters as well price adjustments across the entire product portfolio had a positive impact. In the financial year 2022, the Parcel & Logistics Division reported reduced revenue, especially in the Türkiye parcel business, as well as declines in pandemic-related special logistics services. Positive effects in interest and commission income led to an increase in the 2022 revenue of the Retail & Bank Division.
 
The key earnings indicators for the year 2022 are as follows: EBITDA increased by 0.6 % to EUR 372.7m (Q4: +10.3 %) and earnings before interest and taxes (EBIT) decreased by 8.0 % to EUR 188.4m (Q4: +3.9 %). The Mail Division reported an increase in earnings (EBIT) of 1.6 % to EUR 157,6m (Q4: +5.7 %). EBIT of the Parcel & Logistics Division was reduced from EUR 118.1m to EUR 88.8m (–24.8 %; Q4: –17.9 %) and the Retail & Bank Division improved to minus EUR 26.7m in 2022 after minus EUR 39.2m (+32.0 %; Q4: +65.6 %) in the previous year. Austrian Post’s profit for the period amounted to EUR 128.1m compared to EUR 158.4m (–19.1 %; Q4: –9.4 %) last year. This results in earnings per share of EUR 1.86 for 2022. Based on a solid performance and balance sheet position, an attractive dividend of EUR 1.75 per share will again be proposed to the Annual General Meeting on 20 April 2023.
 
The political and economic challenges of last year are also expected to shape the economic environment in 2023. As a result, it is crucial for Austrian Post to address these underlying conditions in terms of both revenue and costs. Therefore, the company aims to grow in the low to mid-single digit range based on the Group revenue of EUR 2.5bn in 2022. Despite the expected increase in costs due to the ongoing inflation, earnings (EBIT) of about the same level as last year should be achievable with planned revenue growth in 2023.
 
The capacity expansion programme in Austria should also be completed by the end of 2023, resulting in a sorting capacity of around 140,000 parcels per hour. We are also investing heavily in the further expansion of our sustainable vehicle fleet to use more electric vehicles, because “our aim is to continue securing our leading position in terms of quality of service provision, as well as efficiency and speed, through climate-friendly logistics” CEO Georg Pölzl adds. Austrian Post is therefore planning capital expenditures in the range of EUR 160m – EUR 180m for 2023.
 
“At the moment, we express our sincere sympathy especially to the people affected by the severe earthquakes in Türkiye and Syria. Austrian Post provided immediate aid in the form of large tents for emergency shelters and also participated in a fundraising campaign, as well as provides support to employees and the local population through its Turkish subsidiary Aras Kargo. In addition, we would like to extend our sincere thanks to all employees and partners of Austrian Post. They all performed an outstanding job under the challenging conditions of 2022. Together, we will successfully continue to remain the preferred partner for our customers” CEO Georg Pölzl concludes.

Revenue in 2022

• Group revenue up by 0.1 % to EUR 2,522.0m
• Volatile development during the quarters: Q1–Q4: –7.1 %/–0.8 %/+5.7 %/+3.0 %
  • Mail down by 0.5 % to EUR 1,218.0m (Q4: +0.1 %)
  • Parcel & Logistics down by 2.5 % to EUR 1,214.6m or up by 0.8 % excl. Parcel Türkiye (Q4: +2.7 % or stable excl. Parcel Türkiye)
  • Retail & Bank up by 64.0 % to EUR 122.5m (Q4: +68.3 %)

Earnings in 2022

• EBITDA up by 0.6 % to EUR 372.7m (Q4: +10.3 %)
• EBIT down by 8.0 % to EUR 188.4m (Q4: +3.9 %)
  • Mail up by 1.6 % to EUR 157.6m
  • Parcel & Logistics down by 24.8 % to EUR 88.8m
  • Retail & Bank up by 32.0 % to minus EUR 26.7m

Cash flow, balance sheet and dividend

• Operating free cash flow 2022 of EUR 183m
• Balance sheet total of EUR 5.4bn as at 31 December 2022 significantly expanded since inclusion of bank99 in 2020
• Dividend proposal to the Annual General Meeting on 20 April 2023 of EUR 1.75 per share

Outlook for 2023

• Inflation remains a challenge, economic environment and purchasing power in the regions are difficult to forecast, lower visibility
• Target of revenue growth in the low to mid-single digit range
• Earnings (EBIT) target at about the same level as the previous year