InPost Q2 results: significant revenue growth, reaching EUR 464.0 million
InPost Group reached record volumes of 214.7 million parcels in Q2 2023 (+19% YoY), up 28% YoY in its international markets and 15% YoY in Poland.
In response to the ongoing high levels of consumer demand the business is seeing for its services, InPost has also continued to expand its network and now has 59,640 out-of-home points across Europe.
Furthermore, in July InPost entered into an agreement to acquire a 30% equity stake in Menzies Distribution for £49.3 million, following the signing of an exclusive logistics partnership in May. This partnership is already proving positive and has alleviated capacity challenges in the network, allowing volumes to grow alongside the increasing consumer demand. These changes improved adjusted EBITDA per parcel throughout the quarter.
- The Group generated significant revenue growth in Q2 2023, reaching EUR 464.0 million, up 26.2% YoY, driven by increased parcel volumes and the success of repricing strategies in Poland.
- Group adjusted EBITDA reached EUR 149.6 million, an increase of 35.0% YoY, with an adjusted EBITDA margin of 32.2%, representing a 210 bps increase from the previous year. This was due to improved profitability in Poland and significantly reduced losses in the UK and Italy.
- In Q2 2023, InPost achieved positive Free Cash Flow (FCF) of EUR 20.2 million at a Group level with Polish segment FCF of EUR 37.4 million, 28% FCF/adjusted EBITDA conversion what resulted in further reduced net debt/adjusted EBITDA to 2.7x, compared to 3.0x as at end of Q1 2023 and 3.2x in Q4 2022.
- Group parcel volumes reached a record of 214.7 million in Q2 2023, representing a significant year-on-year increase of 19%. Both Poland and InPost’s international markets contributed to this growth, recording YoY increases of 15% and 28%, respectively. The Group continued to gain market share across all geographies.
- The Group’s total network of out-of-home points reached 59,640, and the number of APMs exceeded 30,000 for the first time (+30% YoY). This equates to nearly 4 million lockers. In Q2, the Group deployed 1,678 new APMs, with over 60% of those added outside of Poland.
- Following the end of Q2, InPost announced the acquisition of a 30% equity stake in Menzies Distribution, a new logistics provider for InPost in the UK. The transaction unlocks InPost’s growth potential in this market.
InPost updated its view of the FY 2023 outlook reflecting the confidence in the current strategy and high levels of consumer demand the business is seeing for its services across all key geographies.
The Group is focused on following areas:
- exceeding market volume growth in Poland while improving margins;
- in Mondial Relay we will invest into network capacity and market share gains while managing rising costs due to labour inflation and investment into scale;
- enhancing logistics in the UK, to continue growth significantly surpassing the market. We expect adjusted EBITDA in the UK to reach breakeven by the end of 2023 on a run-rate basis and to be profitable on a full-year basis in 2024, and
- the Group expects positive FCF at the year end and to continue deleveraging in the second half of the year.
Rafał Brzoska, Founder and CEO of InPost commented: “It is extremely encouraging to see the business continue to report strong levels of growth and profitability. The 19% increase in volumes is testament to our dedication in providing exceptional levels of service to consumers.
In response to the ongoing high levels of consumer demand for our services, we continued to invest in the expansion of our network, resulting in further market share gains in our core geographies. Growth in the UK, one of our key markets, is being supported by the new logistics partnership with Menzies, which will open many new possibilities for the years ahead.
Looking forward, we continue to grow our network, strengthen our market positioning, and drive further improvements in profitability across all geographies.”