Geopost CEO: 2023 has proved to be another year full of challenges

Geopost has announced its 2023 annual results today. In a complex market environment, Geopost revenues remain stable in 2023 and the company pursues the roll-out of its strategic roadmap.

• €15.69 billion in revenue, up by 0.7% from 2022, demonstrating Geopost ability to adapt to adverse market conditions.
• 2.1 billion parcels delivered worldwide, stable compared to 2022 (-0.6%)
•  EBIT of €330 million reflecting both exogenous factors such as the global economic slowdown and high pressure on costs, as well as exceptional items
• Restated from one-off effects, Geopost EBIT stands at €635 million.

 Further strengthening of strategic segments such as out-of-home and food delivery, to build a performing global network:

• Accelerated growth in out-of-home delivery (+25% in volumes compared to 2022), with 100,000 pickup points reached in Europe, as well as new temperature-controlled delivery solutions deployed in three new countries
•  Sustained reinforcement of both quality and efficiency with the exact day delivery of DPD Classic offer, ensuring reliable and predictable service all over Europe
• Reinforcement of Geopost global network with the creation of DPD Argentina, a joint venture with local operator TASA Logistica
• Acquisition of the final mile courier company Absolutely in February 2023, aiming at strengthening the same day activities in the UK.

 Further progress made in Geopost ambition to become an international reference in sustainable delivery:

• Formal endorsement of Geopost “Net Zero Emissions by 2040” trajectory by the Science Based Targets initiative.
•  Second consecutive year of absolute reduction in GHG emissions with -25,673 tons (-1.4% compared to 2022).
• Continued transformation and diversification of the delivery fleet – 2,500 low-emission vehicles were added in 2023, bringing the fleet to more than 9,000 low-emission vehicles – and the addition of electric, biogas and biofuel trucks to the HGV fleet.

Asendia’s revenue and operating income included, as La Poste Groupe has incorporated its shareholding in Asendia into the operational management of Geopost since 1st July 2021
100,000 Pickup points in Europe, incl. 9,400 points in Scandinavia via Geopost’s partnership with PostNord
Launch of the Carbon Calculator, an innovative tool enabling the simple, efficient, and accredited calculation of carbon emissions, supporting Geopost’s clients in their carbon-reduction strategies

Commenting on these results, Yves Delmas, CEO of Geopost, said: “2023 has proved to be another year full of challenges for Geopost. We have ended the year with stable revenues. In a complex market environment, impacted by adverse trends that weighed on the entire parcel delivery market, our teams succeeded in demonstrating their best resilience. Altogether, 2023 has been a pivotal year: we continued to deliver on our strategy by adapting and taking the necessary actions to protect our operating performance whilst resolutely carrying out our ambitious sustainability agenda. A case in point is the endorsement of our net-zero targets by the Science Based Targets Initiative (SBTi), a major achievement and a testament to our commitment to fighting climate change. Today, we’re confident in our strategy and our long-term ambitions, and we’re looking forward to 2024 as a new milestone in our economic, sustainable and social development.”

Stable revenues in 2023

In 2023, uncertainties and disruptions linked to a complex geopolitical environment, marked by several international conflicts, persisted. Energy prices and inflation continued to weigh on global demand, while economic growth stagnated and even decreased in certain regions. The fast/express parcel business faced ever-increasing pressure on costs, in both BtoB and BtoC segments.
For the first time since the emergence of e-commerce, it has declined notably in Germany (-12% in value) in the UK (-3% in value), and in France (-1,8% in value), which corresponds to even higher decreases in volumes. This e-commerce volume decline significantly reflects the choices made by households against a backdrop of falling purchasing power and more cautious consumer habits in most of the markets where Geopost operates.

In those challenging conditions, Geopost recorded stable revenues of €15.69 billion (+ 0.7% compared to 2022):
Revenue from the express and parcel activities amounted to €13,028 million, stable (-€13 million, or -0.1%), in an adverse macroeconomic context (high inflation, weak growth, slowdown in consumption) resulting in a stabilisation in volumes (2.1 billion parcels delivered i.e. -0.6% compared to 2022 and representing more than 8 million parcels delivered each day). Turnover in the four main European countries (France, United Kingdom, Germany and Italy) represents more than 55% of the total revenue. Some countries saw organic revenue increase, notably Italy (+5.7%), France (+2.8%), Spain (+1.6%) and Poland (+1.0%), while others recorded an organic decline such as Germany (-5.7%), the United Kingdom (-3.1%) and Benelux (-1.0%).

Benefiting from the dynamism of international e-commerce, Asendia generated revenue of €2,623 million, an increase of €113 million (+4.5%). Excluding scope (+€69 million) and foreign exchange (+€4 million) impacts, organic growth was +€41 million (+1.6%), driven by its logistics business.

Geopost operating result stood at €329.8 million in 2023, reflecting the economic situation, the effect of the inflationary environment on its costs structure, as well as some exceptional items:
As of 31/12/2023, the payment and accruals related to tax and social litigations of the Italian subsidiary of -€169 million, the impact of the sale of Stuart’s activities of €136 million,

Excluding this significant non-recurring items, Geopost operating profit decreased by -€183 million, mainly reflecting the cyclical slowdown in the parcel and express business in an adverse macroeconomic context.

Geopost’s overall investments amounted to €667 million (vs. €1,236 million at the end of 2022). It consisted of €471 million in internal investments (stable vs. 2022), focused on the development of delivery processing capacity, the expansion of the distribution network and the development of New Services, and €194 million in external growth (down 74.6% vs. 2022). Geopost consolidated its position as the leader of parcel delivery in Europe by developing strategic segments

Sustained consolidation of Geopost’s growth engines
Out-of-home delivery has been one of the main growing segments and a major asset for leading in BtoC in recent years, as outlined by Geopost 2023 e-shopper barometer. With a 25% growth of parcels delivered out-of-home in 2023 vs 2022, Geopost showed a robust activity in this field, thanks to the support of a strong network. By the end of 2023, Geopost had a network of more than 100,000 Pickup points throughout Europe, the densest and most extensive network of PUDO on the market. This network now includes 25,000 points in Poland, 18,000 in France, 10,000 in the UK, 8,000 in Germany, 7,500 in Italy (Fermopoint) and 5,000 in Spain, plus more than 9,000 in the Nordic countries thanks to Geopost strategic partnership with the PostNord group (Denmark, Finland, Norway and Sweden). Automatic lockers are also growing fast in Europe, with almost 19,000 lockers deployed to date by Geopost (6,000 more than by the end of 2022).