bpost signals intent to become “international e-commerce logistics player”
Belgium’s bpost has announced its intention to “become an international e-commerce logistics player”, with 45% of its revenues generated by activities outside Belgium and 60% of revenues generated by parcels and logistics activities by 2022.
In a statement sent to Post&Parcel today (21 June), bpost said that it will use its Capital Markets Day to outline a “redefined vision” for 2022 – which will include three strategic priorities as well as mid-term objectives for the period 2018-2022.
The company explained why it is look to transform and diversify its business: “As the environment and customer needs are changing rapidly, bpost’s traditional business in Belgium is under pressure with mail volume decline accelerating (up to -7% expected in 2018). Therefore bpost has to capture the growth of parcels (double digit volume growth expected in 2018) and logistic activities related to e-commerce in the Belgium-Netherlands (Be-Ne) region, Europe, North America, and Asia.
Koen Van Gerven, Group CEO of bpost, commented: “Our 2022 vision is to be, beyond mail, an efficient global e-commerce logistics player anchored in Belgium.
“Our transformation will thus continue in order to adapt to evolving customer needs in our fast-paced environment and extended Be-Ne home region, and to ensure a sustainable future for our company.”
bpost said its three strategic priorities are:
1. Remain an efficient provider of mail, retail and public services
2. Grow profitably in Parcels & Logistics business in Europe and Asia
3. Deliver on the Radial investment thesis in North America
bpost said that the strategic priorities “translate into revised medium-term financial objectives”, key elements of which include:
• Normalized EBIT 2018: Guidance of low end of €560-600m normalized EBITDA equivalent to normalized EBIT of €400-440m.
• Normalized EBIT 2019-2022: Ambition to achieve organic normalized EBIT in the range of €390m to €440m, with 2019 expected to be the low end of the range.
Van Gerven added: “bpost can rely on a strong track record of successful transformation experience. Furthermore, operational excellence is embedded throughout our company and has been developed over more than a decade with all stakeholders.
“I am confident and delighted that we will successfully conduct the next phase of our transformation as we have a strong management team with well-defined agenda in each business yet to successfully conduct the next phase of our transformation and a clear and, shared 2022 vision for our Group”.