PostNL CEO: Q3 turned out to be a tough quarter
PostNL has released its Q3 2023 results revealing normalised EBIT of €(11) million for Q3 2023 (Q3 2022: €(20) million).
- Parcel volumes up 1.6%, with continued strong growth from international customers
- Volumes -8.7% at Mail in the Netherlands, mainly due to substitution
- Measures to mitigate inflation contributed to results
- Preparations towards maximum capacity fully completed in Q3; steep ramp-up towards peak season
- 11% further improvement in average carbon efficiency
- Intention to buy back €160 million of 1.000% Eurobond, due November 2024, to optimise the financial position
Herna Verhagen, CEO of PostNL, comments: “Our results were better than last year. Q3 turned out to be a tough quarter. We continued our strong focus on measures to mitigate inflationary pressure, but overall this was insufficient to fully offset organic cost increases. Volumes at Parcels grew at a lower rate than anticipated. In line with the slowdown in consumer spending, domestic volumes were slightly below last year’s level. At the same time, volumes from international customers were up again. The shift towards a less favourable mix continued. During the quarter, we have completed all necessary preparations to operate at our maximum capacity in our peak season. At Mail in the Netherlands, performance was also impacted by continuing volume decline, a less favourable mix and ongoing high sick rates, partially due to contuining scarcity in the labour market.
“Taking into account our Q3 performance, we expect FY 2023 normalised EBIT to come in at the low end of the guided range of between €100 million and €130 million. Going forward, uncertainty around macroeconomic developments remains. This hampers visibility on the short-term development of the e-commerce market. Volume projections are becoming increasingly volatile, both for our customers and for us. At the same time we anticipate additional pressure on costs, mainly labour-related. We are taking all necessary actions in a challenging environment.
“We are ready for a busy peak season and remain confident in our longer term strategy and the growth potential of the e-commerce market.”
