La Poste Group: budget 2008 and ambitions 2012
La Poste Board of Directors convened the expected consolidated figures for 2007, and approved the 2008 budget, the pluriannual business plan 2008-2010, and the Group’s financial ambitions for 2012.
In 2007, La Poste should achieve the target operating margin – operating profit over revenues – set for the financial year at 5.8pct , as against 4.6pct in 2006 (IFRS pro forma). It should also meet its net profit target of EUR 850 million. La Poste should also make internal investments of around EUR 1.2 billion in 2007, marginally higher than the EUR 1,136 million of 2006, continuing the drive to modernisation in each of its divisions. External growth operations are directly dependent on market opportunities and are likely to be more moderate in 2007 (EUR 110 million as against EUR 550 million in 2006, essentially involving the international build-up of the Express business.
In 2008, turnover is forecast to rise by 2.9 pct excluding changes in provisions for épargne logement (Home Ownership Savings Plans and Accounts). Mail business revenues should grow by around 1pct , including, as in previous years, slight erosion in volume. The Parcels and Express division should achieve organic growth of more than 6pct. Finally La Banque Postale expects an increase in net banking income of around 4pct.
La Poste Group will implement a programme of internal capital expenditure and investment worth EUR 1.3 billion in 2008. As in 2007, the Mail Quality Project will be implemented at a fast pace, involving the start up of 8 new Industrial Mail Centers. Furthermore, La Poste expects in 2008 to renovate several hundred post offices, having upgraded some 1,900 such in the last thirty months.
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