Posti: Current macroeconomic and market conditions bring uncertainty to economic projection and consumer confidence
Posti Group has released its figures for 2023: profitability increased as a result of significant improvements in operational excellence. Weak consumer demand in Q4 affected sales.
Unless otherwise stated, the figures in brackets refer to the corresponding period in the previous year.
October-December
Financial highlights
- Net sales decreased by 5.3% to EUR 429.7 (453.6) million.
- Adjusted EBITDA increased to EUR 64.2 (63.5) million, or 14.9% (14.0%) of net sales.
- EBITDA increased to EUR 64.2 (61.2) million, or 14.9% (13.5%) of net sales.
- Adjusted operating result increased to EUR 31.6 (30.9) million, representing 7.4% (6.8%) of net sales.
- Operating result increased to EUR 31.0 (26.3) million, representing 7.2% (5.8%) of net sales.
January-December
Financial highlights
- Net sales decreased by 4.0% to EUR 1,586.1 (1,651.6) million.
- Adjusted EBITDA increased to EUR 197.7 (183.8) million, or 12.5% (11.1%) of net sales.
- EBITDA increased to EUR 188.6 (178.2) million, or 11.9% (10.8%) of net sales.
- Adjusted operating result increased to EUR 66.4 (58.9) million, representing 4.2% (3.6%) of net sales.
- Operating result decreased to EUR -7.0 (51.0) million, representing -0.4% (3.1%) of net sales, mainly due to impairments and other special items in Q3.
- Net debt to adjusted EBITDA was 1.2x (1.1x).
Operational highlights in Q4
- Group net sales decreased which was affected by low consumer and customer demand in all segments.
- Despite declined sales, effective improvements in operational efficiency in all segments increased the Group’s adjusted EBITDA to a good level, especially in the eCommerce and Delivery Services segment.
- In the eCommerce and Delivery Services segment, the total parcel volume grew by 3% (decreased by 4%) driven by the growth in the Baltic countries.
- Posti delivered about 12 million Christmas cards and nearly 7 million parcels during the peak season, from the Black Week until Christmas.
- Posti hired over 1,300 employees for the peak season across Finland.
- The addressed letter volumes continued to decrease by 12% (8%).
- The share of mail items covered by the universal service obligation accounted for 5.8% (5.3%) of all Posti’s mail items delivered.
Outlook for 2024
In 2024, Posti is expecting its net sales and adjusted EBITDA to be on the previous year’s level. In 2023, Posti’s net sales from continuing operations were EUR 1,586.1 million and adjusted EBITDA was EUR 197.7 million.
Current macroeconomic and market conditions bring uncertainty to economic projection and consumer confidence. Consumer behaviour affects Posti’s business and may further impact our actual results.
The Group’s business is characterized by seasonality. The net sales and adjusted EBITDA in the segments are not accrued evenly over the year. In consumer parcels and Postal Services, the first and fourth quarters are typically strong, while the second and third quarters are weaker. The postal volume decline is expected to continue.
