Itella publishes 2009 results
Finnish operator Itella has released its latest set of financial figures. The results state that:
Itella Group’s net sales amounted to EUR 1,819.7m. Net sales fell by 6.8% and comparable net sales excluding the impact of the previous year’s acquisitions and divestments shrank by 11.4%. International operations accounted for 30% of net sales.
Consolidated operating profit including non-recurring items was EUR 46.7m, or 2.6% of net sales. Operating profit before non-recurring items amounted to EUR 86.3m, representing 4.7% of net sales.
Personnel-related restructuring costs of EUR 29m represented the most significant non-recurring item. An impairment of EUR 10.6m was recorded on the goodwill of Itella Logistics’ Russian business.
The profitability of Itella Mail Communication declined. The volume of addressed letters fell by 7%. A new sorting technology and carbon neutral Itella Green delivery services were introduced.
Itella Information’s profitability improved and business operations were expanded in Central Europe and in Russia.
Itella Logistics’ performance was negatively affected by the sharp fall in volumes, reflecting the general trend in the industry.
Itella’s investments totaled EUR 144.9m and they focused primarily on postal services in Finland. This was the last year of major investments in Itella Mail Communication’s development program.
The Board of Directors proposes that no dividend be paid.
In connection with its financial statements, Itella will publish a Corporate Governance report.
Jukka Alho, President and CEO, said: “In 2009, we focused on building a competitive business for the future and on adjusting operations to changes in demand. Despite the challenging market situation, our profitability excluding non-recurring items was nearly on previous year’s level. Full-year earnings were taxed by significant personnel-related non-recurring costs. In the final quarter, our efficiency enhancement measures began to take effect and operative profitability strengthened from the reference period a year earlier. All in all, Itella has emerged from the economic slump as a financially sound company. This could be attributed to our healthy cash flow, which remained steady despite the economic turmoil.
“Itella Information’s business saw particularly positive development, and profitability showed a marked improvement from the previous year. Itella Mail Communication’s net sales fell by 2.1%. Even though the digitisation of invoicing and other transaction communication is now well and truly under way, the impact of this trend on Itella’s letter deliveries has been surprisingly small. The delivery volume decline was very moderate considering the low economic cycle. Itella Logistics’ business depends heavily on industrial imports and exports as well as on consumer goods trade. Volume reductions in the logistics business have varied between 10 and 30%, depending on the business area.
“According to the customer survey, consumers are more satisfied with Posti than ever. 83% evaluated Posti’s service “good” or “excellent”.
“We are taking determined efforts to prepare Itella for the enforcement of the new Postal Services Act at the beginning of 2011. For several years, we have invested in the modernization of mail processing machinery and in measures to boost our operational efficiency. NetPosti – our response to the digitization of consumer transactions – has gained an established position in the market. NetPosti will be equipped with the eInvoice receiving feature, which will make it a unique service, even by international standards. We are in a position to build such a service thanks to Itella IPS Oy (Itella Payment Services). IPS Oy was established in 2009, and it was licensed by the Financial Supervisory Authority to act as a payment institution and equipped with the necessary technical production facilities in record time. We can now offer customers, both businesses and consumers, more flexibility in their online transactions.”
