InPost CEO: we are encouraged by the significant margin improvements we saw across the quarter
InPost Group, the European automated parcel machine (APM) service provider, continued to scale at speed in Q1 2023, adding, 3,000 out-of-home delivery points to its network across Europe.
In the UK, InPost parcel volumes grew by 95% year on year (YoY) to 7.0 million, driven by increased use of the locker-to-locker service and consumer returns
· In its flagship market of Poland, InPost set a new Q1 record in parcel volumes to 132 million, up 18% YoY, with significant growth in APM and to-door volumes, as it continues to grow market share
· In France, Mondial Relay saw strong volume growth of 17% YoY, driven by significant B2C volume increase as well as by C2C marketplaces
InPost enjoyed strong top line growth in Q1 2023 across all core countries, mainly attributable to volume growth, improvements in operational leverage, the streamlining of logistics and the positive effects of repricing.
Bringing sustainable solutions to last-mile ecommerce remains core to InPost. In March, the Group was proud to have its 2040 net-zero decarbonisation strategy approved by the Science Based Targets initiative in accordance with the Paris Agreement.
- Group revenue was EUR 424.6 million, a 29% YoY increase, largely as a result of volume growth, improvement in operational leverage, continued effort to streamline our processes and the repricing strategies in Poland and Mondial Relay.
- Group adjusted EBITDA reached EUR 119 million, up 36% YoY, driven primarily by continuing improvements in our profitability in Poland.
- InPost achieved positive free cash flow (FCF) generation of EUR 25 million at a Group level and achieved particularly strong cash conversion of 56% in Poland, with FCF of EUR 64 million.
- Net debt/adjusted EBITDA improved slightly to 3.0x at the end of Q1 2023, compared to 3.2x at the end of Q4 2022.
- Group parcel volumes reached 198.7 million, a 21% YoY increase, with international markets and Poland recording 28% and 18% YoY growth respectively.
- The Group’s total network expanded to over 57,000 out-of-home points and the number of APMs reached 29,765, +34% YoY. In the quarter, the Group added 1.8k APMs.
InPost’s view of the FY 2023 outlook remains unchanged.
The Group is focused on three areas:
- exceeding market volume growth in Poland while expanding margins;
- increasing profitability in Mondial Relay, improving operational performance and gaining more B2C market share; and
- resolving logistics challenges in the UK, to enable B2C market share growth and continued growth significantly ahead of the market.
Rafał Brzoska, Founder and CEO of InPost commented: “We’re excited to report another quarter of impressive volume growth, outpacing the market in all our key geographies.
“In our flagship market of Poland, we are encouraged by the significant margin improvements we saw across the quarter. Similarly, Mondial Relay demonstrated strong growth in volumes, proving the strength of our offering in its markets. The growth of B2C parcels during the quarter, especially in France, is a testament to our strategies in our markets. We are optimistic about the outlook in the UK market, having seen encouraging improvement in the economics per parcel as we scale the business. We are committed to unlocking our growth potential in the UK and remain focused on enhancing the logistics supporting our operations in this market.
“Despite our volume growth across all geographies, we are mindful of the overall market slowdown. However, we remain confident in our ability to meet our ambitious expectations as laid out at the beginning of the year.”