E-commerce fillip for PostNL
PostNL has reported that its revenues from e-commerce increased to 34% in the first quarter (Q1) of 2017. The group’s revenue as a whole for Q1 2017 was €870m, up €6m from last year. The underlying cash operating income, however, was down €11m at €50m.
The results also highlighted the usual dichotomy between post & parcel: while parcel volumes increased by 8% (with a 15% underlying trend), addressed mail volume declined by 9.6%.
In a statement issued yesterday (8 May), Herna Verhagen, the CEO of PostNL, commented: “We indicated previously that our result in the first quarter would be below last year’s result. Actual quarterly performance was in line with these expectations, supported by some incidentals. We reconfirm our 2017 outlook of achieving an underlying cash operating income of between €220 million and €260 million.
“With shareholders approving our dividend proposal, an important milestone has been achieved. On 11 May PostNL will reinitiate dividend payment, delivering on our earlier promise. Going forward we expect to reward our shareholders with a progressive dividend as we continue to transform our business to become a logistics e-commerce company, supported by strong e-commerce growth. For example, we continue to solidify our footprint in food distribution and have the ambition to become the e-food logistics service provider in the Benelux.
“Parcels shows 15% underlying volume growth. Strong e-commerce growth continues. Turnover in our logistics services also grew, as did demand for additional services, for example same-day. The results were solid.
“In Mail in the Netherlands volume decline continued, mainly driven by substitution. However, we also see consolidators delivering more mail via their own networks, supported by the ACM measures. Volume decline is the primary driver underlying the lower result. Our restructuring initiatives are well on track and are progressing according to plan. The pending regulatory files continue to require a significant amount of management attention. We remain concerned about the expected adverse effects related to the possible outcome of significant market power and related measures.
“In the first quarter, the result in International improved and shows a mixed picture. The positive contribution of last year’s acquisition in Germany and the first signs of the expected recovery in Italy were partly offset by slightly lower than expected revenue in Spring and lower volumes and revenue in the other German activities.”
