PostNL reports first-quarter results above its expectations

Highlights Q1 2023

• Volume development at Parcels better than expected:
  • reported volumes -6.5%
  • domestic volumes -5.0% (excluding non-recurring impact Covid-19)
• Reported volumes Mail in the Netherlands -10.8% with underlying development (excluding non-recurring impact Covid-19) at -8.1%
• Adaptive measures, good operational leverage, efficiency improvements and productivity gains partly mitigate inflationary pressure
• Progress as scheduled on plans for reduction of 200-300 FTEs in overhead, mainly at Parcels
• Outlook FY 2023 confirmed:
  • normalised EBIT between €70 million and €100 million
  • free cash flow between €10 million and €40 million

Herna Verhagen, CEO of PostNL, said: “Our strong focus on the adaptive measures that we initiated last year, such as optimisation of routes, staff and fleet and tight control of indirect costs, continued to contribute to our results. At the same time the actual volumes at Parcels developed favourably compared to our expectations, both domestically and internationally, especially in March. Together with good operational leverage, this resulted in a performance that came in slightly better than we had anticipated. Our cross-border activities continued the positive trend visible since late 2022.

“During the quarter we also worked hard to further detail our additional plans for the reduction of 200-300 FTEs in overhead, mainly at Parcels. These preparations are progressing according to plan, with expected annual savings of around €25 million set to become visible in 2024.

“Overall, we are satisfied with the start of year, which has shown the positive effect from the necessary steps taken to mitigate the impact of the macroeconomic situation and inflationary pressure on our volumes and costs. In the current economic environment, that continues to be volatile and uncertain, we are on track to deliver our outlook for 2023 normalised EBIT of between €70 million and €100 million.”