bpostgroup results: strong operational growth but net loss due to radial US impairments

bpostgroup has announced its fourth quarter and full year 2024 results  revealing strong operating income growth, driven by Staci’s consolidation and domestic parcel growth, but a reported net loss of -209.2 m EUR due to significant impairment charges on Radial US, leading the Board to propose no dividend payment.

• Group operating income at 1,335.0 mEUR, +9.7% or +117.8 mEUR compared to last year, including 214.1 mEUR contribution from Staci which has been consolidated as of August 1, 2024.
• Group adjusted EBIT at 84.0 mEUR (margin of 6.3%) versus last year at 74.1 mEUR. EBIT, reflecting new Press contracts and North American pressures offset by Staci’s contribution (26.4 mEUR). Group reported EBIT at -222.9 mEUR, down by -293.8 mEUR compared to last year, due to 299.4 mEUR of non-cash impairment charges on Radial US in the context of material recent client churn, combined with a continued challenging market environment and related materializing downside risks tied to the long term plan.
• BeNe Last Mile 
  • Total operating income at 614.3 mEUR (-3.6%) or -23.0 mEUR.
  • -21.3 mEUR from lower Press revenues.
  • Underlying mail volume decline (excluding Press) of -8.1% mitigated by +5.3% price/mix impact.
  • Parcels volumes increased by +6.9% and price/mix impact of +0.6%.
  • Nearly stable opex despite salary indexation, slightly lower FTEs and lower cost of sales.
  • Reported EBIT at 24.1 mEUR (3.9% margin) and adjusted EBIT at 24.8 mEUR (4.0% margin).
• 3PL
  • Total operating income at 568.8 mEUR (+36.5%) driven by the integration of Staci (214.1 mEUR), continued expansion at Radial Europe and Active Ants (+14.6%), offset by lower revenues at Radial North America from continued volume pressure.
  • Higher opex from Staci consolidation, offsetting reduced opex from lower US volumes and productivity gains.
  • Reported EBIT at -262.7 mEUR impacted by the impairment charges related to Radial US (299.4 mEUR) and adjusted EBIT at 45.3 mEUR (8.0% margin).
• Global Cross-border 
  • Total operating income at 173.8 mEUR (-7.2%) reflecting lower revenues from Landmark US downtrading customers, higher cross-border sales reflecting growth from existing and recent customer wins in Europe and Asia.
  • Lower opex from lower volume driven transport costs and higher payroll costs.
  • Reported EBIT at 23.5 mEUR (13.5% margin) and adjusted EBIT at 23.6 mEUR (13.6% margin).
  • For the full year 2024, group adjusted EBIT of 224.9 mEUR is in line with guidance. bpostgroup delivers annual results driven by domestic Parcels growth, Staci’s contribution, and Radial’s productivity gains, which help mitigate the impact of new Press contracts and topline pressures in North America.
  • Adjusted group net profit for the full year 2024 came in at 122.7 mEUR while reported group net result stood at -209.2 mEUR, due to the impairment charges on Radial US (299.4 mEUR).
  • In line with the negative IFRS net result and the dividend policy, the Board of Directors will propose to the General Shareholders’ Meeting in May 2025 not to pay a dividend this year.

For the full year 2024, group adjusted EBIT of 224.9 m EUR is in line with guidance. bpostgroup delivers annual results driven by domestic Parcels growth, Staci’s contribution, and Radial’s productivity gains, which help mitigate the impact of new Press contracts and topline pressures in North America.

Adjusted group net profit for the full year 2024 came in at 122.7 mEUR while reported group net result stood at -209.2 mEUR, due to the impairment charges on Radial US (299.4 mEUR).

In line with the negative IFRS net result and the dividend policy, the Board of Directors will propose to the General Shareholders’ Meeting in May 2025 not to pay a dividend this year.

 

Chris Peeters, CEO of bpostgroup: “Thanks to the dedication and commitment of our teams across the globe, we successfully executed the end-of-year peak. Despite challenging market conditions and various headwinds, our Q4 and full-year results remain in line with our financial guidance. Once again, bpostgroup has demonstrated strong resilience. Our results confirm that Staci is already making a significant contribution, as expected, and its integration into the Group is progressing well.
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​2025 will be a transformational year as we move towards becoming a regional digital expert in parcel-size logistics. The foundations for future growth are in place, we need to lay them out and build on them. This means accelerating our transformation in Belgium, reinforcing our 3PL strategy, and further diversifying our cross-border activities. To achieve these ambitions, we are strengthening our structure and organization.
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​Undoubtedly, this year will bring challenges. We have already encountered some: in Last Mile, we faced several days of strikes in an already complex social climate in Belgium. At Radial North America, we are experiencing customer departures, and we have yet to reverse the churn trend. However, all our teams are working together to regain the trust of our employees, customers, and shareholders – in order to strengthen our company for the future.”