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EQS-News: Francotyp-Postalia Holding AG / Key word(s): Annual Results
Francotyp-Postalia announced financial results 2023
2024-04-25 / 08:00 CET/CEST
The issuer is solely responsible for the content of this announcement.
FP announced financial results 2023
Berlin, April 25, 2024 - Today, Francotyp-Postalia Holding AG (ISIN DE000FPH9000) announced its unaudited figures for
the 2023 financial year.
In 2023 revenue decreased by 3.7% to EUR 241.8 million compared to EUR 251.0 million in 2022. On a constant currency
basis, revenue amounted to EUR 245.9 million. This was at the lower end of the forecast range of EUR 245 to 255
million, as most recently specified.
Earnings before interest, taxes, depreciation and amortization (EBITDA) reached EUR 31.0 million compared to EUR 27.6
million in the previous year, with an EBITDA margin of 12.8%. On a constant currency basis, EBITDA was EUR 33.4
million. This exceeded the original forecast of EUR 28 to 31 million. EBITDA in 2023 includes the release of provisions
in the amount of EUR 4.8 million due to changes and progress in restructuring plans. EBITDA in 2022 was also influenced
by positive one-off effects.
Free cash flow increased to EUR 9.1 million in 2023 compared to EUR 8.1 million in the previous year due to the
improved operating cash flow despite higher investments. Net debt was reduced by further 20.4% to EUR 14.4 million.
Solid business performance in all three business areas
Revenue development in all three business areas was largely in line with expectations.
Mailing, Shipping & Office Solutions generated revenue of 146.8 million euros compared to 148.4 million euros in the
previous year. On a constant currency basis, revenue amounted to 150.4 million euros, slightly up on the previous year
(1.3%). In addition, the previous year was positively impacted by one-off effects of 2.9 million euros due to the
postal rate change in Germany. FP expanded its range of solutions in 2023 to include two new franking machine models,
giving it an attractive product portfolio to hold its own in a challenging market environment.
In the Mail Services business area, which focuses on the collection, franking and consolidation of business mail, FP
generated revenue of EUR 66.8 million after EUR 73.4 million in 2022. Previous year had benefited from pandemic-related
special effects of EUR 10 million.
Revenue in Digital Business Solutions reached 27.9 million euros compared to 28.8 million euros in the previous year.
Output Management saw a downward trend in the second half of the year, primarily due to the decline in business from a
major customer, which could not be compensated for in the short term. In addition, the sharp decline in mail volumes in
Germany was also felt by existing customers, as fewer volumes were processed. The SaaS-solutions continued to show
steady growth of 13.7% and the solution portfolio was significantly enhanced in 2023. FP Sign was expanded with new
functionalities, especially for enterprise customers, and continues to show positive business development. In the
Shipping & Logistics segment, the FP Parcel Shipping solutions launched in Norway and the Netherlands in 2023 made a
positive contribution to revenue. The FP TRAXsuite solution for inbound parcel management also recorded revenue growth
due to the onboarding of new customers and is increasingly being marketed internationally.
Earnings per share rise to EUR 0.67
In 2023, the FP Group generated EBITDA of EUR 31.0 million compared to EUR 27.6 million in the previous year. The FP
Group's EBITDA margin improved to 12.8% from 11.0% in 2022.
The cost of materials fell by 9.5% to 112.8 million euros compared to 124.7 million euros in the previous year. The
reduction corresponds to the decline in sales, particularly in the Mail Services division, while price changes only
played a minor role. The cost of materials ratio, i.e. the ratio of cost of materials to revenue, fell to 46.6%
(previous year: 49.7%). Personnel expenses increased slightly by 0.8% to EUR 66.2 million in 2023 compared to EUR 65.7
million in the previous year. The personnel expenses ratio thus increased to 27.4% compared to 26.2% in the previous
year. The increase is due to the higher salary level in the Group, partly to compensate for inflation, which partially
offset the positive effects from the continuation of the transformation program.
Other operating expenses decreased by 3.5% to EUR 38.9 million in 2023 compared to EUR 40.3 million in the previous
year. The increase in various types of expenses is offset by a one-off effect from the release of restructuring
provisions totaling EUR 4.8 million. In the FP Group, the further implementation of the transformation program required
significantly lower expenses than calculated in previous years.
Depreciation, amortization and impairments decreased by 14.3% to EUR 18.0 million compared to EUR 21.0 million in the
previous year. This was primarily the result of lower impairments on internally generated intangible assets.
Consolidated net income consequently improved to EUR 10.5 million in 2023 compared to EUR 8.0 million in the previous
year. Earnings per share (EPS) rose to EUR 0.67 compared to EUR 0.50 in the previous year.
The comparative period 2022 was adjusted in the consolidated financial statements as at 31.12.2023. The adjustment
relates to the measurement of tax effects from intra-Group service relationships in the comparative period 2022. This
correction led to a reduced tax expense of EUR 2.5 million in 2022.
Transformation program: optimize and accelerate implementation
FP CFO Ralf Spielberger says: "With revenue of EUR 245.9 million as constant currency, the revenue target was achieved
at the lower end of expectations. EBITDA developed somewhat more positively than expected - also due to one-off effects
- and reached EUR 31.0 million, or even EUR 33.4 million on a constant currency basis. In view of these figures, the
financial year as a whole can be described as satisfactory. However, the business development shows that we need to
accelerate the transformation in order to grow in the medium to long term."
The new FP CEO Friedrich Conzen explains: "We will improve the transformation process through centralized control in
order to achieve sustainable growth in the coming years. To this end, we will identify the key value drivers for the
positive development of the respective business divisions. We will optimize and accelerate implementation along the
path we have chosen. The foundations of our business model are excellent and provide a good basis for the
transformation to succeed."
Forecast for 2024
Business performance in 2024 will continue to be influenced by the difficult macroeconomic conditions. In addition,
market-specific developments in the mail market remain challenging. Therefore, the Management Board expects for the
fiscal year 2024 for the Group a revenue and EBITDA at the level of 2023 or slightly below.
The expected development of the financial performance indicators for the 2024 financial year is generally based on the
assumption of constant exchange rates.
The audited annual financial statements and the audited consolidated financial statements for the 2023 financial year
will be published on April 30, 2024. The reason for the delay is the time required in view of the increased
requirements under the ESEF Regulation.

Key figures at a glance:

in EUR million                             2023  2022  Change 
Revenue                                    241.8 251.0  -3.7 % 
Cost of materials                          112.8 124.7  -9.5 % 
Employee benefit expenses                   66.2  65.7  +0.8 % 
Other operating expenses                    38.9  40.3  -3.5 % 
EBITDA as reported                          31.0  27.6 +12.3 % 
Amortisation, Depreciation and Impairment   18.0  21.0 -14.3 % 
Consolidated profit                         10.5   8.0 +31.3 % 
Earnings per share (in EUR)                 0.67  0.50 +34.0 % 
Free Cashflow                                9.1   8.1 +12.4 % 

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Disclaimer

Statements in this press release relating to the future development and forecasts of the Group are based on our careful assessment of future events and economic forecasts. Any negative macroeconomic developments beyond this may cause actual results for 2024 to differ from the forecast figures.

For Investor Relations inquiries, please contact:

Dr. Monika Plum Tel.: +49 (0)30 220 660 410 E-Mail: ir@francotyp.com

About Francotyp-Postalia:

Francotyp-Postalia Holding AG, a listed company based in Berlin, is the holding company of the globally operating FP Group (FP). FP is an expert in solutions that make office and work life easier and more efficient. FP has the following business areas: Digital Business Solutions, Mailing, Shipping & Office Solutions and Mail Services. In the Digital Business Solutions business area, FP improves customers' business processes with solutions for document workflow management, business process management & automation and shipping & logistics. In the Mailing, Shipping & Office Solutions business areas, FP is the world's third-largest provider of mailing systems and is also the market leader in Germany, Austria, Scandinavia and Italy. FP has subsidiaries based in 15 countries and is represented by its own trading network in many other countries. In the Mail Services business areas, FP offers the consolidation of business mail and is among the leading providers in Germany. In 2023, FP generated revenue of more than EUR 240 million. Contact: Francotyp-Postalia Holding AG Investor Relations Telefon: +49 (0)30 220 660 410 Telefax: +49 (0)30 220 660 425 E-Mail: ir@francotyp.com

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