La Poste heads for higher 2007 profits as express and parcels grow
The French postal operator Groupe La Poste is on course for a double-digit rise in operating profits this year thanks to good growth for its express and parcels businesses and stable mail activities. Changes are meanwhile taking place at subsidiaries Chronopost and Europe Airpost.
The group announced that it achieved a half-year operating profit of EUR 829 million on revenues up 3.7 pct at EUR 10.5 billion (on a like-for-like comparison). Net profits ended at EUR 504 million.
La Poste stated that the results are “in line” with its planning targets, and reiterated its aim of achieving a 12 pct rise in operating profits and a 5.8 pct operating profit margin this year. It invested EUR 590 million in the half-year, including EUR 105 million for express acquisitions.
The mail business increased half-year revenues by 2.6 pct to EUR 5.95 billion. Volumes were “virtually stable” compared to the general downward trend in mail traffic across Europe, while revenues benefited from new direct marketing customers and added-value products for consumers, La Poste pointed out.
The express division (GeoPost) increased revenues by 8.4% (6.4% on a like-for-like basis) to EUR 1.54 billion. GeoPost continued its international expansion in the first half-year, including acquisitions of 50% in South African company Laser and 25% in Turkey’s Yurtici Kargo, La Poste stated. The French domestic parcels business (ColiPoste) increased revenues by 6.5% to EUR 646 million thanks to a surge in e-commerce business.
Meanwhile, French business newspaper Les Echos reported that the new head of Chronopost, Christian Emery, has changed two key points of the French express operator’s ongoing restructuring plan. The new EUR 50 million national hub at Chilly-Mazarin, south of Paris, due to open in October 2007, will only gradually go into full service over the following six months, the newspaper wrote. In addition, bulk handling of parcels will be extended through the network of 68 locations. Chronopost will in future focus on next-day express deliveries within France, with services based on deliveries by 10:00 or 13:00, Les Echos said.
Separately, French media have reported that La Poste is in exclusive talk to sell its small airline Europe Airpost (formerly Aeropostale) to Algerian-owned aviation company Aigle Azur. Les Echos said Aigle Azur had offered EUR 47 million for the airline but staff was concerned about job security and future working conditions. An earlier plan to sell it to a South African company fell over after a pilots’ strike.
La Poste plans to dispose of the domestic mail airline in order to concentrate on sending express mail and parcels by high-speed train through a new subsidiary to be formed with French rail operator SNCF. The airline, with 25 planes and 400 staff, made a profit of EUR 15 million on revenues of EUR 240 million in 2006.
