Productivity boost helps bpost maintain financial stability
Belgium’s bpost has seen its turnover and profits increase slightly, despite a worsening in the reduction of its mail volumes. The company reported its first half results today, showing a 2.3% increase in its operating income, to EUR 1.2bn, while its profit after tax grew less than one percent to EUR 141.4m.
bpost said its 3% volume decline compared to the first half of 2010 was generally higher than its previous yearly volume declines, which have been between a half-percent and 1.5% since 2005.
However, the decline was not so bad as the 4% drop in volumes seen in its “crisis year” 2009.
New activities including the issuing of European vehicle licence plates and package services in the US, along with an increase in prices early this year, “more than compensated” for the volume declines, the company said.
bpost operating costs increased 2.4% year-on-year to EUR 931.2m, mostly because of the launch of new business and investments in projects seeking future sales growth and productivity improvements.
Improvements
The company managed to keep down its wage inflation and higher energy costs through productivity improvements, with a EUR 21m saving on staff costs and only a EUR 3.6m increase in transportation and equipment expenditure.
Commenting on its results, bpost said its modernisation efforts were keeping its finances healthy, with operating profits before tax (EBIT) rising 2.6% to EUR 222.1m.
In an internal communication to his staff, Johnny Thijs, CEO of bpost, said the company’s first-half results “hold up well”, but there was a need for “great vigilance” regarding the decline in volumes, particularly for registered items.
“In the second half of the year we gear up to the next level to further reduce costs and boost sales,” said Thijs.
“Moreover, we will step up our high quality service and customer satisfaction. This will be crucial to realise as our goal in 2011 – just as it was in 2010 – especially to ensure the health of the company. “
