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08.05.2024 07:31:27 - dpa-AFX: EQS-News: AUSTRIAN POST Q1 2024: First-quarter revenue and earnings above the prior-year level (english)
AUSTRIAN POST Q1 2024: First-quarter revenue and earnings above the
prior-year level
EQS-News: Österreichische Post AG / Key word(s): Interim Report
AUSTRIAN POST Q1 2024: First-quarter revenue and earnings above the
prior-year level
08.05.2024 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
AUSTRIAN POST Q1 2024:
First-quarter revenue and earnings above the prior-year level
Revenue growth in all divisions
* Revenue up by 14.1 % to EUR 758.6m
* Mail +2.3 % to EUR 315.6m
* Parcel & Logistics +23.2 % to EUR 402.9m (+16.9 % excl. Parcel Türkiye)
* Retail & Bank +26.0 % to EUR 47.2m
Earnings higher YOY
* EBITDA +8.7 % to EUR 103.4m
* EBIT +11.4 % to EUR 52.4m
* Earnings per share +28.2 % to EUR 0.59
Cash flow and balance sheet
* Operating free cash flow of EUR 72.3m
* Balance sheet total incl. bank99 of EUR 5.9bn
Outlook 2024
* Expected Group revenue growth in the mid-single-digit range
* Earnings (EBIT) at least at the prior-year level
The first quarter of 2024 continued to be impacted by difficult
macroeconomic conditions prevailing in Austrian Post's markets. The high
inflation rate and weak economic catalysts negatively affected the
willingness of companies to invest as well as consumer purchasing behaviour.
On the one hand, a decline in traditional retail stores was noticeable
whereas on the other hand growth in national and international e-commerce
was reported. Austrian Post generated a 15 % increase in parcel volumes in
Austria in the first quarter of 2024, compared with a 6 % rise in Türkiye
and 44 % in Southeast and Eastern Europe.
'Against the backdrop of a difficult market environment as well as
inflation-related cost increases, the company performed very well in the
first quarter of the year, generating both revenue and earnings increases,'
says Austrian Post CEO Georg Pölzl. Total Group revenue in the first quarter
of 2024 increased by 14.1 % to EUR 758.6m and showed improvements in all
divisions. Mail Division revenue equalled EUR 315.6m (+2.3 %) and was
impacted by the structural decline of addressed letter mail volumes and a
decrease in the direct mail business. However, it was positively affected by
postal rate adjustments in the letter mail, direct mail and media post
segments. The Parcel & Logistics Division generated EUR 402.9m in revenue in
the first quarter of the year (+23.2 %; +16.9 % excl. Parcel Türkiye),
showing a very positive development in all regions. Revenue of the Retail &
Bank Division amounted to EUR 47.2m (+26.0 %). Interest rate developments in
recent months positively contributed to divisional revenue.
Earnings also improved in the first quarter of 2024. EBITDA was up by 8.7 %
to EUR 103.4m, whereas earnings before interest and taxes (EBIT) increased
by 11.4 % to EUR 52.4m. Parcel & Logistics Division earnings increased by
44.9 %, with Parcel Türkiye making a substantial contribution to the
earnings improvement. Business in Türkiye continues to be more strongly
influenced by inflation and currency translation than in other markets. The
Mail Division generated a 3.3 % earnings increase in contrast to the decline
of EUR 3.5m in the Retail & Bank Division attributable to one-time IT
expenditures for the core banking migration project of bank99. The profit
for the period of the Austrian Post Group totalled EUR 41.6m in the
reporting period compared to EUR 32.0m in the previous year (+30.1 %). In
turn, this equalled earnings per share of EUR 0.59 in the first quarter of
2024 (+28.2 %).
In addition to market challenges, Austrian Post faces inflation-related cost
increases for the entire 2024. On the revenue side, this will be dealt with
new products and services as well as upward price adjustments. Based on
current forecasts, revenue growth in the mid-single-digit range is expected
in the 2024 financial year. Revenue growth on the one hand, but also cost
discipline and efficiency on the other, are necessary in order to ensure the
stability that Austrian Post is aiming to achieve. In both mail and parcel
logistics, Austrian Post is forging ahead with solutions that offer a high
level of customer benefits, but which also enable efficient and plannable
processes. Austrian Post's 2024 target is for earnings (EBIT) to be at least
at the same level as last year. A slight rise in earnings is possible if the
current macroeconomic environment continues in Austrian Post's markets.
The planned investment programme remains a top priority alongside revenue
generation and cost discipline. Investments in the coming years will focus
on expanding international logistics as well as e-mobility. For example, the
company aims to ensure CO2-free last mile delivery in Austria by 2030.
Austrian Post expects investments in 2024 in total of EUR 140-160m in order
to secure sustainability and growth.
'We are extremely grateful to our employees for their commitment and joint
efforts to work on providing first-class service to our customers,'
concludes CEO Georg Pölzl.
The complete version of the outlook as well as detailed information
(excerpts) from the Group management report for the first quarter 2024 can
be found starting on page 4. The entire report is available on the website
of Austrian post under post.at/investor in the Download Centre.
KEY FIGURES
1 Includes the intra-Group cost allocation procedure
2 Undiluted earnings per share in relation to 67,552,638 shares
3 Free cash flow before acquisitions/securities/money market investments,
Growth CAPEX and core banking assets
Vienna, 8 May 2024
EXCERPTS FROM THE GROUP MANAGEMENT REPORT Q1 2024
REVENUE DEVELOPMENT IN DETAIL
In the first quarter of 2024, Austrian Post's Group revenue increased by
14.1 % year-on-year to EUR 758.6m. All divisions produced increased revenue
in the first three months of 2024: Revenue of the Mail Division was up by
2.3 %, whereas Parcel & Logistics revenue climbed by 23.2 % and the Retail &
Bank Division showed a 26.0 % increase.
The share of the Mail Division as a proportion of the total revenue
generated by Austrian Post in the first quarter of 2024 amounted to 41.2 %.
The division's revenue of EUR 315.6m is negatively impacted by the
structural decline of addressed letter mail volumes as a result of
electronic substitution but also benefits from last year's postal rate
adjustments. Moreover, a subdued advertising environment is notable, which
is related to the economic weakness of certain retail segments.
The Parcel & Logistics Division accounted for 52.6 % of Group revenue or EUR
402.9m in the reporting period. The parcel business developed very
positively in all regions. In particular, high growth was generated in
Türkiye, impacted by high inflation and the exchange rate of the Turkish
Lira.
The Retail & Bank Division accounted for 6.2 % of Group revenue or EUR 47.2m
in the first quarter of 2024. The customer ramp-up of bank99 as well as the
interest rate environment in recent months made a positive contribution to
the division's revenue.
Revenue of the Mail Division totalled EUR 315.6m in the first quarter of
2024, of which 63.6 % is attributed to the Letter Mail & Business Solutions
area. Direct Mail accounted for 25.8 % of the total divisional revenue, and
Media Post had a 10.6 % share.
In the first quarter of 2024, Letter Mail & Business Solutions revenue
equalled EUR 200.6m, implying a year-on-year increase of 1.2 %. Letter mail
volumes continue to show a downward trend resulting from the substitution of
letters by electronic forms of communication. Conventional letter mail
volumes in Austria fell by 7 % in the first quarter of 2024. Postal rate
adjustments implemented in the previous year positively affected the revenue
development. Inflationary pressures on all types of costs led to adjustments
in the product and pricing structure as well as to necessary efficiency
increases of internal processes. International letter mail showed a decline
in both volumes and revenue, whereas the Business Solutions area developed
positively (+10.4 %).
Direct Mail revenue rose by 2.8 % in the first quarter of 2024 to EUR 81.4m.
The subdued advertising environment characterised by economic difficulties
as well as the structural decline in certain customer segments (e.g., mail
order business) was offset by adjustments to the pricing structure.
Revenue from Media Post, i.e., the delivery of newspapers and magazines,
rose by 7.4 % year-on-year to EUR 33.6m. This increase is related mainly to
adjustments in the product and pricing structure.
Revenue of the Parcel & Logistics Division increased by 23.2 % in the first
quarter of 2024 to EUR 402.9m. The parcel business developed very positively
in all regions.
Parcel Austria grew its revenue by 16.4 % to EUR 215.5m in the reporting
period. Parcel volumes grew by 15 % in the first quarter of 2024,
attributable to both strong customer confidence in the quality of Austrian
Post as well as to increasing national and international parcel volumes.
Revenue in Türkiye and Azerbaijan (Parcel Türkiye) increased by 41.4 % to
EUR 118.2m compared to the first three months of 2023. On the one hand, this
high level of growth is due to increasing volumes. On the other hand,
revenue is impacted by high inflation and the exchange rate of the Turkish
Lira.
The parcel business in Southeast and Eastern Europe (Parcel CEE/SEE)
continues to generate positive growth rates, with revenue up by 27.9 % to
EUR 55.5m in the first quarter of 2024. There was a strong increase in
parcel volumes from Asia in this region.
Revenue of Logistics Solutions/Consolidation fell by EUR 1.4m in the current
reporting period to EUR 13.7m due to consolidation effects.
Revenue of the Retail & Bank Division improved by 26.0 % in the first
quarter of 2024 from EUR 37.5m to EUR 47.2m. Income from Financial Services
contributed 78.9 % to the divisional revenue, whereas Branch Services
accounted for 21.1 %. Income from Financial Services climbed by 35.3 % to
EUR 37.3m in the current reporting period. This is mainly due to the
improved interest rate environment in Europe as well as the customer ramp-up
of bank99. Branch Services revenue increased slightly by 0.7 % to EUR 10.0m
in the first quarter of 2024 as a result of inflation-related price
adjustments in the field of retail products.
EARNINGS DEVELOPMENT
The largest expense items in relation to Austrian Post's Group revenue are
staff costs (45.1 %), raw materials, consumables and services used (29.6 %)
and other operating expenses (13.7 %). 6.7 % can be attributed to
depreciation, amortisation and impairment losses and 1.5 % to expenses from
financial services.
Staff costs in the first quarter of 2024 totalled EUR 341.9m, implying a
year-on-year increase of 14.0 % or EUR 42.1m. The change results primarily
from collective wage salary adjustments reported under operational staff
costs in Austria as well as internationally. Austrian Post Group employed an
average of 27,870 people (full-time equivalents) in the first three months
of 2024 compared to the average of 27,095 employees in the prior-year period
(+2.9 %). Non-operating staff costs refer to severance payments and changes
in provisions, which are primarily related to the specific employment
situation of civil servant employees at Austrian Post. No significant extra
charges were incurred in the first quarter of 2024.
Raw materials, consumables and services used rose by 13.5 % to EUR 224.3m.
This development mainly relates to increased fuel and energy costs as well
as to higher transport costs for external freight companies attributable to
the increased volumes in all parcel regions.
Other operating income increased by 26.7 % in the first quarter of 2024 to
EUR 23.6m. This development can be attributed to inflation-related price
adjustments (e. g. rentals). Other operating expenses rose by 13.7 % to EUR
103.8m, particularly for IT services and maintenance costs.
Accounting standard IAS 29 (Financial Reporting in Hyperinflationary
Economies) needs to be applied for the Turkish subsidiary. Accordingly, all
items in the income statement as well as the non-monetary items were
adjusted using a general price index (refer to the Annual Report 2023,
Consolidated Financial Statements, Note 3.3 Hyperinflation). The profit or
loss from net monetary items is presented as a separate item in the income
statement. In the first quarter of 2024, the net monetary gain amounted to
EUR 1.9m.
EBITDA equalled EUR 103.4m in the first quarter of 2024, an increase of 8.7
% from the comparable figure of EUR 95.1m in the previous year. This implies
an EBITDA margin of 13.6 %. Depreciation, amortisation and impairment losses
amounted to EUR 51.0m in the first three months of 2024, constituting a
year-on-year increase of 6.0 % or EUR 2.9m. The increase is mainly due to
investments in new parcel logistics infrastructure locations. Group EBIT
totalled EUR 52.4m in the first quarter of 2024, up from EUR 47.0m in the
previous year (+11.4 %). The EBIT margin equalled 6.9 %.
The Group's financial result in the first quarter of 2024 improved to EUR
1.3m compared to minus EUR 3.4m in the prior-year period. The current period
under review included a positive effect related to the valuation of
financial parameters for the option liability for the remaining 20 % stake
in Aras Kargo. The income tax rose slightly from EUR 11.6m to EUR 12.0m. The
profit for the period for the first three months of 2024 equalled EUR 41.6m,
compared to EUR 32.0m in the first quarter of the previous year (+30.1 %).
Undiluted earnings per share were EUR 0.59, up from the comparable figure of
EUR 0.46 in the prior-year period.
EBIT BY DIVISION
Total earnings (EBIT) in Q1 2024 rose from EUR 47.0m to EUR 52.4m (+11.4 %)
and were impacted by very positive revenue development (+14.1 %) as well as
by inflation-related cost increases.
From a divisional perspective, the Mail Division achieved an EBIT of EUR
42.3m in the first three months of 2024 compared to EUR 41.0m in the
prior-year period (+3.3 %). This increase resulted from adjustments to the
Letter Mail product and pricing structure as well as price increases in
Direct Mail/Media Post.
The Parcel & Logistics Division generated an EBIT of EUR 24.2m in the first
quarter of 2024 compared to EUR 16.7m in the prior-year period (+44.9 %).
The parcel business showed a positive development in all regions in which
Austrian Post operates. The parcel business in Türkiye made a significant
contribution to the earnings improvement. Business operations in Türkiye
continue to be more strongly influenced by inflation and currency
translation than other markets.
The Retail & Bank Division recorded an EBIT of minus EUR 2.7m in the first
quarter of 2024, compared to EUR 0.9m in the previous year. The decline is
mainly due to one-off IT expenses in connection with the bank99 core bank
migration project.
The EBIT of the Corporate Division (including Consolidation and the
intra-Group cost allocation procedure) changed from minus EUR 11.5m to minus
EUR 11.4m. The Corporate Division provides non-operating services which are
typically essential for the purpose of the administration and financial
control of the company. In addition to conventional corporate governance
tasks, these services include the management and development of commercial
properties not required for operations, the management of significant
financial investments, the provision of IT services, the development of new
business models and the administration of the Internal Labour Market of
Austrian Post.
CASHFLOW and BALANCE SHEET
The gross cash flow in the first quarter of 2024 equalled EUR 92.7m,
compared to EUR 79.8m in the first quarter of 2023 (+16.1 %). The cash flow
from operating activities amounted to EUR 147.0m in the reporting period,
compared to the prior-year figure of minus EUR 50.9m. In this regard, the
largest effect is attributable to changes in the core banking assets of
bank99 totalling EUR 60.1m compared to minus EUR 138.4m in the first quarter
of 2023. Core banking assets include the change in the balance sheet items
Financial assets from financial services and Financial liabilities from
financial services, excluding cash, cash equivalents and balances with
central banks, and thus encompass the deposit and investment business of
bank99. The cash flow from operating activities excluding core banking
assets totalled EUR 86.9m in the first quarter of 2024 compared to EUR 87.5m
in the previous quarter.
The cash flow from investing activities was minus EUR 72.1m in the first
three months of 2024, compared to minus EUR 56.0m in the prior-year period.
Expenditures for the acquisition of property, plant and equipment and
investment property (CAPEX) equalled EUR 25.0m in the current reporting
period.
Austrian Post relies on operating free cash flow as a key metric to assess
the financial strength of its operating business and to cover the dividend
for the financial year. Excluding the change in core banking assets, the
operating free cash flow totalled EUR 72.3m in the current reporting period
compared to EUR 75.1m in the previous year. The cash flow from financing
activities came to minus EUR 2.2m in the first three months of 2024,
compared to minus EUR 30.1m in the prior-year period.
Austrian Post relies on a solid balance sheet and financing structure. Total
assets amounted to EUR 5.9bn as at 31 March 2024. On the asset side,
property, plant and equipment at EUR 1,357.1m is one of the largest balance
sheet items and includes right-of-use assets under leases of EUR 385.2m. In
addition, there are intangible assets and goodwill from business
combinations, which are reported in the amount of EUR 145.9m as at 31 March
2024. The balance sheet shows receivables of EUR 480.1m, other financial
assets amounted to EUR 77.1m as at 31 March 2024. Financial assets from
financial services amounted to EUR 3,509.4m at the end of the first quarter
of 2024 and result mainly from the business activities of bank99.
On the equity and liabilities side of the balance sheet, the equity of the
Austrian Post Group amounted to EUR 762.8m as at 31 March 2024, representing
an equity ratio of 12.9 %. The pro-forma equity ratio, taking into account
bank99 using the equity method, came to 30 % at the end of March 2024. At
the end of the reporting period, provisions totalled EUR 595.9m, other
financial liabilities amounted to EUR 650.3m and trade and other payables
totalled EUR 584.72m. Financial liabilities from financial services
amounting to EUR 3,326.8m result primarily from the business activities of
bank99 (deposit and investment business of bank99's customers).
OUTLOOK 2024
International mail and parcel markets are influenced by various factors. In
general, forecasts of weak international growth impede both the companies'
investment activity and consumer behaviour. In turn, this negatively impacts
the volume development of letter mail and direct mail. In contrast, parcel
volumes are rising as a result of the strong online retail business.
Revenue Growth in 2024
In addition to the challenges of the market, it is also important for
Austrian Post to offset inflation-related cost increases. On the revenue
side, this can be achieved through new products and services as well as
upward price adjustments. Based on current forecasts, revenue growth in the
mid-single-digit range is expected for the 2024 financial year.
A largely stable revenue development is anticipated in the Mail Division.
The fundamental trend towards declining volumes in the traditional mail
segment will continue. Difficult conditions in the retail sector as well as
reduced volumes of direct mail and media post are expected due to weak
economy. In contrast, various elections in Austria at a local and national
level, as well as price adjustments for various products, should have a
positive effect in 2024.
Further growth is expected in the Parcel & Logistics Division. Depending on
developments in the individual countries, an overall increase in the upper
single-digit range should be possible at the very least. Growth
opportunities also strongly depend on macroeconomic developments. In Türkiye
in particular, the economic environment and inflation as well as the
exchange rate of the Turkish Lira, make more precise forecast more
difficult.
The Retail & Bank Division is likely to achieve single-digit growth in
revenue depending on the interest rate environment. The most important goal
here for 2024 will be finalising the core bank migration.
Group Earnings in 2024
Revenue growth on the one hand, but also cost discipline and efficiency on
the other hand, are necessary in order to ensure the stability that Austrian
Post is aiming to achieve. In both mail and parcel logistics, Austrian Post
is forging ahead with solutions that offer a high level of customer benefit,
but which also enable efficient and planable processes. Austrian Post
targets earnings (EBIT) in 2024 at least at the same level as in the
previous year. A slight increase in earnings is possible if the current
macroeconomic environment continues to prevail in Austrian Post's markets.
Investment Programme in 2024
In the meantime, the massive investment programme implemented in recent
years - which has almost tripled sorting capacity in Austria - has been
completed. Investments in the coming years will focus on expanding
international logistics and on e-mobility. For example, the company is
aiming for last-mile delivery to be completely CO-free by 2030. In total,
the plan for 2024 is to invest around EUR 70-80m in maintenance CAPEX
(automation, digitalisation, maintenance), EUR 40-50m in green
transformation (electric vehicles, photovoltaic systems) as well as about
EUR 30m in growth CAPEX, primarily in Türkiye and Southeast and Eastern
Europe.
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08.05.2024 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com
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End of News EQS News Service
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1897553 08.05.2024 CET/CEST
prior-year level
EQS-News: Österreichische Post AG / Key word(s): Interim Report
AUSTRIAN POST Q1 2024: First-quarter revenue and earnings above the
prior-year level
08.05.2024 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
AUSTRIAN POST Q1 2024:
First-quarter revenue and earnings above the prior-year level
Revenue growth in all divisions
* Revenue up by 14.1 % to EUR 758.6m
* Mail +2.3 % to EUR 315.6m
* Parcel & Logistics +23.2 % to EUR 402.9m (+16.9 % excl. Parcel Türkiye)
* Retail & Bank +26.0 % to EUR 47.2m
Earnings higher YOY
* EBITDA +8.7 % to EUR 103.4m
* EBIT +11.4 % to EUR 52.4m
* Earnings per share +28.2 % to EUR 0.59
Cash flow and balance sheet
* Operating free cash flow of EUR 72.3m
* Balance sheet total incl. bank99 of EUR 5.9bn
Outlook 2024
* Expected Group revenue growth in the mid-single-digit range
* Earnings (EBIT) at least at the prior-year level
The first quarter of 2024 continued to be impacted by difficult
macroeconomic conditions prevailing in Austrian Post's markets. The high
inflation rate and weak economic catalysts negatively affected the
willingness of companies to invest as well as consumer purchasing behaviour.
On the one hand, a decline in traditional retail stores was noticeable
whereas on the other hand growth in national and international e-commerce
was reported. Austrian Post generated a 15 % increase in parcel volumes in
Austria in the first quarter of 2024, compared with a 6 % rise in Türkiye
and 44 % in Southeast and Eastern Europe.
'Against the backdrop of a difficult market environment as well as
inflation-related cost increases, the company performed very well in the
first quarter of the year, generating both revenue and earnings increases,'
says Austrian Post CEO Georg Pölzl. Total Group revenue in the first quarter
of 2024 increased by 14.1 % to EUR 758.6m and showed improvements in all
divisions. Mail Division revenue equalled EUR 315.6m (+2.3 %) and was
impacted by the structural decline of addressed letter mail volumes and a
decrease in the direct mail business. However, it was positively affected by
postal rate adjustments in the letter mail, direct mail and media post
segments. The Parcel & Logistics Division generated EUR 402.9m in revenue in
the first quarter of the year (+23.2 %; +16.9 % excl. Parcel Türkiye),
showing a very positive development in all regions. Revenue of the Retail &
Bank Division amounted to EUR 47.2m (+26.0 %). Interest rate developments in
recent months positively contributed to divisional revenue.
Earnings also improved in the first quarter of 2024. EBITDA was up by 8.7 %
to EUR 103.4m, whereas earnings before interest and taxes (EBIT) increased
by 11.4 % to EUR 52.4m. Parcel & Logistics Division earnings increased by
44.9 %, with Parcel Türkiye making a substantial contribution to the
earnings improvement. Business in Türkiye continues to be more strongly
influenced by inflation and currency translation than in other markets. The
Mail Division generated a 3.3 % earnings increase in contrast to the decline
of EUR 3.5m in the Retail & Bank Division attributable to one-time IT
expenditures for the core banking migration project of bank99. The profit
for the period of the Austrian Post Group totalled EUR 41.6m in the
reporting period compared to EUR 32.0m in the previous year (+30.1 %). In
turn, this equalled earnings per share of EUR 0.59 in the first quarter of
2024 (+28.2 %).
In addition to market challenges, Austrian Post faces inflation-related cost
increases for the entire 2024. On the revenue side, this will be dealt with
new products and services as well as upward price adjustments. Based on
current forecasts, revenue growth in the mid-single-digit range is expected
in the 2024 financial year. Revenue growth on the one hand, but also cost
discipline and efficiency on the other, are necessary in order to ensure the
stability that Austrian Post is aiming to achieve. In both mail and parcel
logistics, Austrian Post is forging ahead with solutions that offer a high
level of customer benefits, but which also enable efficient and plannable
processes. Austrian Post's 2024 target is for earnings (EBIT) to be at least
at the same level as last year. A slight rise in earnings is possible if the
current macroeconomic environment continues in Austrian Post's markets.
The planned investment programme remains a top priority alongside revenue
generation and cost discipline. Investments in the coming years will focus
on expanding international logistics as well as e-mobility. For example, the
company aims to ensure CO2-free last mile delivery in Austria by 2030.
Austrian Post expects investments in 2024 in total of EUR 140-160m in order
to secure sustainability and growth.
'We are extremely grateful to our employees for their commitment and joint
efforts to work on providing first-class service to our customers,'
concludes CEO Georg Pölzl.
The complete version of the outlook as well as detailed information
(excerpts) from the Group management report for the first quarter 2024 can
be found starting on page 4. The entire report is available on the website
of Austrian post under post.at/investor in the Download Centre.
KEY FIGURES
Chang-
e
EUR m Q1 Q1 % EUR m
2023 2024
Revenue 664.7 758.6 14.1 94.0
%
Mail 308.6 315.6 2.3 % 7.0
Parcel & Logistics 327.1 402.9 23.2 75.8
%
Retail & Bank 37.5 47.2 26.0 9.8
%
Corporate/Consolidation -8.5 -7.0 17.5 1.5
%
Other operating income 18.6 23.6 26.7 5.0
%
Raw materials, consumables and services -197.- -224.- -13.5 -26.7
used 6 3 %
Expenses from financial services -1.9 -11.3 <-100 -9.4
%
Staff costs -299.- -341.- -14.0 -42.1
8 9 %
Other operating expenses -91.3 -103.- -13.7 -12.5
8 %
Results from financial assets accounted 0.1 0.5 >100 0.5
for using the equity method %
Net monetary gain 2.4 1.9 -20.9 -0.5
%
EBITDA 95.1 103.4 8.7 % 8.2
Depreciation, amortisation and impairment -48.1 -51.0 -6.0 -2.9
losses %
EBIT 47.0 52.4 11.4 5.3
%
Mail 41.0 42.3 3.3 % 1.3
Parcel & Logistics 16.7 24.2 44.9 7.5
%
Retail & Bank 0.9 -2.7 <-100 -3.5
%
Corporate/Consolidation1 -11.5 -11.4 0.4 % 0.0
Financial result -3.4 1.3 >100 4.7
%
Profit before tax 43.6 53.7 23.0 10.0
%
Income tax -11.6 -12.0 -3.4 -0.4
%
Profit for the period 32.0 41.6 30.1 9.6
%
Earnings per share (EUR)2 0.46 0.59 28.2 0.13
%
Gross cash flow 79.8 92.7 16.1 12.9
%
Cash flow from operating activities -50.9 147.0 >100 197.9
%
CAPEX 24.1 25.0 3.6 % 0.9
Free cash flow -106.- 74.9 >100 181.7
8 %
Operating free cash flow3 75.1 72.3 -3.7 -2.8
%
1 Includes the intra-Group cost allocation procedure
2 Undiluted earnings per share in relation to 67,552,638 shares
3 Free cash flow before acquisitions/securities/money market investments,
Growth CAPEX and core banking assets
Vienna, 8 May 2024
EXCERPTS FROM THE GROUP MANAGEMENT REPORT Q1 2024
REVENUE DEVELOPMENT IN DETAIL
In the first quarter of 2024, Austrian Post's Group revenue increased by
14.1 % year-on-year to EUR 758.6m. All divisions produced increased revenue
in the first three months of 2024: Revenue of the Mail Division was up by
2.3 %, whereas Parcel & Logistics revenue climbed by 23.2 % and the Retail &
Bank Division showed a 26.0 % increase.
The share of the Mail Division as a proportion of the total revenue
generated by Austrian Post in the first quarter of 2024 amounted to 41.2 %.
The division's revenue of EUR 315.6m is negatively impacted by the
structural decline of addressed letter mail volumes as a result of
electronic substitution but also benefits from last year's postal rate
adjustments. Moreover, a subdued advertising environment is notable, which
is related to the economic weakness of certain retail segments.
The Parcel & Logistics Division accounted for 52.6 % of Group revenue or EUR
402.9m in the reporting period. The parcel business developed very
positively in all regions. In particular, high growth was generated in
Türkiye, impacted by high inflation and the exchange rate of the Turkish
Lira.
The Retail & Bank Division accounted for 6.2 % of Group revenue or EUR 47.2m
in the first quarter of 2024. The customer ramp-up of bank99 as well as the
interest rate environment in recent months made a positive contribution to
the division's revenue.
Revenue of the Mail Division totalled EUR 315.6m in the first quarter of
2024, of which 63.6 % is attributed to the Letter Mail & Business Solutions
area. Direct Mail accounted for 25.8 % of the total divisional revenue, and
Media Post had a 10.6 % share.
In the first quarter of 2024, Letter Mail & Business Solutions revenue
equalled EUR 200.6m, implying a year-on-year increase of 1.2 %. Letter mail
volumes continue to show a downward trend resulting from the substitution of
letters by electronic forms of communication. Conventional letter mail
volumes in Austria fell by 7 % in the first quarter of 2024. Postal rate
adjustments implemented in the previous year positively affected the revenue
development. Inflationary pressures on all types of costs led to adjustments
in the product and pricing structure as well as to necessary efficiency
increases of internal processes. International letter mail showed a decline
in both volumes and revenue, whereas the Business Solutions area developed
positively (+10.4 %).
Direct Mail revenue rose by 2.8 % in the first quarter of 2024 to EUR 81.4m.
The subdued advertising environment characterised by economic difficulties
as well as the structural decline in certain customer segments (e.g., mail
order business) was offset by adjustments to the pricing structure.
Revenue from Media Post, i.e., the delivery of newspapers and magazines,
rose by 7.4 % year-on-year to EUR 33.6m. This increase is related mainly to
adjustments in the product and pricing structure.
Revenue of the Parcel & Logistics Division increased by 23.2 % in the first
quarter of 2024 to EUR 402.9m. The parcel business developed very positively
in all regions.
Parcel Austria grew its revenue by 16.4 % to EUR 215.5m in the reporting
period. Parcel volumes grew by 15 % in the first quarter of 2024,
attributable to both strong customer confidence in the quality of Austrian
Post as well as to increasing national and international parcel volumes.
Revenue in Türkiye and Azerbaijan (Parcel Türkiye) increased by 41.4 % to
EUR 118.2m compared to the first three months of 2023. On the one hand, this
high level of growth is due to increasing volumes. On the other hand,
revenue is impacted by high inflation and the exchange rate of the Turkish
Lira.
The parcel business in Southeast and Eastern Europe (Parcel CEE/SEE)
continues to generate positive growth rates, with revenue up by 27.9 % to
EUR 55.5m in the first quarter of 2024. There was a strong increase in
parcel volumes from Asia in this region.
Revenue of Logistics Solutions/Consolidation fell by EUR 1.4m in the current
reporting period to EUR 13.7m due to consolidation effects.
Revenue of the Retail & Bank Division improved by 26.0 % in the first
quarter of 2024 from EUR 37.5m to EUR 47.2m. Income from Financial Services
contributed 78.9 % to the divisional revenue, whereas Branch Services
accounted for 21.1 %. Income from Financial Services climbed by 35.3 % to
EUR 37.3m in the current reporting period. This is mainly due to the
improved interest rate environment in Europe as well as the customer ramp-up
of bank99. Branch Services revenue increased slightly by 0.7 % to EUR 10.0m
in the first quarter of 2024 as a result of inflation-related price
adjustments in the field of retail products.
EARNINGS DEVELOPMENT
The largest expense items in relation to Austrian Post's Group revenue are
staff costs (45.1 %), raw materials, consumables and services used (29.6 %)
and other operating expenses (13.7 %). 6.7 % can be attributed to
depreciation, amortisation and impairment losses and 1.5 % to expenses from
financial services.
Staff costs in the first quarter of 2024 totalled EUR 341.9m, implying a
year-on-year increase of 14.0 % or EUR 42.1m. The change results primarily
from collective wage salary adjustments reported under operational staff
costs in Austria as well as internationally. Austrian Post Group employed an
average of 27,870 people (full-time equivalents) in the first three months
of 2024 compared to the average of 27,095 employees in the prior-year period
(+2.9 %). Non-operating staff costs refer to severance payments and changes
in provisions, which are primarily related to the specific employment
situation of civil servant employees at Austrian Post. No significant extra
charges were incurred in the first quarter of 2024.
Raw materials, consumables and services used rose by 13.5 % to EUR 224.3m.
This development mainly relates to increased fuel and energy costs as well
as to higher transport costs for external freight companies attributable to
the increased volumes in all parcel regions.
Other operating income increased by 26.7 % in the first quarter of 2024 to
EUR 23.6m. This development can be attributed to inflation-related price
adjustments (e. g. rentals). Other operating expenses rose by 13.7 % to EUR
103.8m, particularly for IT services and maintenance costs.
Accounting standard IAS 29 (Financial Reporting in Hyperinflationary
Economies) needs to be applied for the Turkish subsidiary. Accordingly, all
items in the income statement as well as the non-monetary items were
adjusted using a general price index (refer to the Annual Report 2023,
Consolidated Financial Statements, Note 3.3 Hyperinflation). The profit or
loss from net monetary items is presented as a separate item in the income
statement. In the first quarter of 2024, the net monetary gain amounted to
EUR 1.9m.
EBITDA equalled EUR 103.4m in the first quarter of 2024, an increase of 8.7
% from the comparable figure of EUR 95.1m in the previous year. This implies
an EBITDA margin of 13.6 %. Depreciation, amortisation and impairment losses
amounted to EUR 51.0m in the first three months of 2024, constituting a
year-on-year increase of 6.0 % or EUR 2.9m. The increase is mainly due to
investments in new parcel logistics infrastructure locations. Group EBIT
totalled EUR 52.4m in the first quarter of 2024, up from EUR 47.0m in the
previous year (+11.4 %). The EBIT margin equalled 6.9 %.
The Group's financial result in the first quarter of 2024 improved to EUR
1.3m compared to minus EUR 3.4m in the prior-year period. The current period
under review included a positive effect related to the valuation of
financial parameters for the option liability for the remaining 20 % stake
in Aras Kargo. The income tax rose slightly from EUR 11.6m to EUR 12.0m. The
profit for the period for the first three months of 2024 equalled EUR 41.6m,
compared to EUR 32.0m in the first quarter of the previous year (+30.1 %).
Undiluted earnings per share were EUR 0.59, up from the comparable figure of
EUR 0.46 in the prior-year period.
EBIT BY DIVISION
Total earnings (EBIT) in Q1 2024 rose from EUR 47.0m to EUR 52.4m (+11.4 %)
and were impacted by very positive revenue development (+14.1 %) as well as
by inflation-related cost increases.
From a divisional perspective, the Mail Division achieved an EBIT of EUR
42.3m in the first three months of 2024 compared to EUR 41.0m in the
prior-year period (+3.3 %). This increase resulted from adjustments to the
Letter Mail product and pricing structure as well as price increases in
Direct Mail/Media Post.
The Parcel & Logistics Division generated an EBIT of EUR 24.2m in the first
quarter of 2024 compared to EUR 16.7m in the prior-year period (+44.9 %).
The parcel business showed a positive development in all regions in which
Austrian Post operates. The parcel business in Türkiye made a significant
contribution to the earnings improvement. Business operations in Türkiye
continue to be more strongly influenced by inflation and currency
translation than other markets.
The Retail & Bank Division recorded an EBIT of minus EUR 2.7m in the first
quarter of 2024, compared to EUR 0.9m in the previous year. The decline is
mainly due to one-off IT expenses in connection with the bank99 core bank
migration project.
The EBIT of the Corporate Division (including Consolidation and the
intra-Group cost allocation procedure) changed from minus EUR 11.5m to minus
EUR 11.4m. The Corporate Division provides non-operating services which are
typically essential for the purpose of the administration and financial
control of the company. In addition to conventional corporate governance
tasks, these services include the management and development of commercial
properties not required for operations, the management of significant
financial investments, the provision of IT services, the development of new
business models and the administration of the Internal Labour Market of
Austrian Post.
CASHFLOW and BALANCE SHEET
The gross cash flow in the first quarter of 2024 equalled EUR 92.7m,
compared to EUR 79.8m in the first quarter of 2023 (+16.1 %). The cash flow
from operating activities amounted to EUR 147.0m in the reporting period,
compared to the prior-year figure of minus EUR 50.9m. In this regard, the
largest effect is attributable to changes in the core banking assets of
bank99 totalling EUR 60.1m compared to minus EUR 138.4m in the first quarter
of 2023. Core banking assets include the change in the balance sheet items
Financial assets from financial services and Financial liabilities from
financial services, excluding cash, cash equivalents and balances with
central banks, and thus encompass the deposit and investment business of
bank99. The cash flow from operating activities excluding core banking
assets totalled EUR 86.9m in the first quarter of 2024 compared to EUR 87.5m
in the previous quarter.
The cash flow from investing activities was minus EUR 72.1m in the first
three months of 2024, compared to minus EUR 56.0m in the prior-year period.
Expenditures for the acquisition of property, plant and equipment and
investment property (CAPEX) equalled EUR 25.0m in the current reporting
period.
Austrian Post relies on operating free cash flow as a key metric to assess
the financial strength of its operating business and to cover the dividend
for the financial year. Excluding the change in core banking assets, the
operating free cash flow totalled EUR 72.3m in the current reporting period
compared to EUR 75.1m in the previous year. The cash flow from financing
activities came to minus EUR 2.2m in the first three months of 2024,
compared to minus EUR 30.1m in the prior-year period.
Austrian Post relies on a solid balance sheet and financing structure. Total
assets amounted to EUR 5.9bn as at 31 March 2024. On the asset side,
property, plant and equipment at EUR 1,357.1m is one of the largest balance
sheet items and includes right-of-use assets under leases of EUR 385.2m. In
addition, there are intangible assets and goodwill from business
combinations, which are reported in the amount of EUR 145.9m as at 31 March
2024. The balance sheet shows receivables of EUR 480.1m, other financial
assets amounted to EUR 77.1m as at 31 March 2024. Financial assets from
financial services amounted to EUR 3,509.4m at the end of the first quarter
of 2024 and result mainly from the business activities of bank99.
On the equity and liabilities side of the balance sheet, the equity of the
Austrian Post Group amounted to EUR 762.8m as at 31 March 2024, representing
an equity ratio of 12.9 %. The pro-forma equity ratio, taking into account
bank99 using the equity method, came to 30 % at the end of March 2024. At
the end of the reporting period, provisions totalled EUR 595.9m, other
financial liabilities amounted to EUR 650.3m and trade and other payables
totalled EUR 584.72m. Financial liabilities from financial services
amounting to EUR 3,326.8m result primarily from the business activities of
bank99 (deposit and investment business of bank99's customers).
OUTLOOK 2024
International mail and parcel markets are influenced by various factors. In
general, forecasts of weak international growth impede both the companies'
investment activity and consumer behaviour. In turn, this negatively impacts
the volume development of letter mail and direct mail. In contrast, parcel
volumes are rising as a result of the strong online retail business.
Revenue Growth in 2024
In addition to the challenges of the market, it is also important for
Austrian Post to offset inflation-related cost increases. On the revenue
side, this can be achieved through new products and services as well as
upward price adjustments. Based on current forecasts, revenue growth in the
mid-single-digit range is expected for the 2024 financial year.
A largely stable revenue development is anticipated in the Mail Division.
The fundamental trend towards declining volumes in the traditional mail
segment will continue. Difficult conditions in the retail sector as well as
reduced volumes of direct mail and media post are expected due to weak
economy. In contrast, various elections in Austria at a local and national
level, as well as price adjustments for various products, should have a
positive effect in 2024.
Further growth is expected in the Parcel & Logistics Division. Depending on
developments in the individual countries, an overall increase in the upper
single-digit range should be possible at the very least. Growth
opportunities also strongly depend on macroeconomic developments. In Türkiye
in particular, the economic environment and inflation as well as the
exchange rate of the Turkish Lira, make more precise forecast more
difficult.
The Retail & Bank Division is likely to achieve single-digit growth in
revenue depending on the interest rate environment. The most important goal
here for 2024 will be finalising the core bank migration.
Group Earnings in 2024
Revenue growth on the one hand, but also cost discipline and efficiency on
the other hand, are necessary in order to ensure the stability that Austrian
Post is aiming to achieve. In both mail and parcel logistics, Austrian Post
is forging ahead with solutions that offer a high level of customer benefit,
but which also enable efficient and planable processes. Austrian Post
targets earnings (EBIT) in 2024 at least at the same level as in the
previous year. A slight increase in earnings is possible if the current
macroeconomic environment continues to prevail in Austrian Post's markets.
Investment Programme in 2024
In the meantime, the massive investment programme implemented in recent
years - which has almost tripled sorting capacity in Austria - has been
completed. Investments in the coming years will focus on expanding
international logistics and on e-mobility. For example, the company is
aiming for last-mile delivery to be completely CO-free by 2030. In total,
the plan for 2024 is to invest around EUR 70-80m in maintenance CAPEX
(automation, digitalisation, maintenance), EUR 40-50m in green
transformation (electric vehicles, photovoltaic systems) as well as about
EUR 30m in growth CAPEX, primarily in Türkiye and Southeast and Eastern
Europe.
CONTACTS Austrian Post Ingeborg Austrian Post Harald Hagenauer Gratzer Head of Media Relations & Head of Investor Relations, Group Internal Communications Tel.: +43 Auditing & Compliance Tel.: +43 (0) 57767-32010 presse@post.at (0) 57767-30400 investor@post.at
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08.05.2024 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com
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Language: English
Company: Österreichische Post AG
Rochusplatz 1
1030 Vienna
Austria
Phone: +43 577 67 - 30400
E-mail: investor@post.at
Internet: www.post.at
ISIN: AT0000APOST4
WKN: A0JML5
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 1897553
End of News EQS News Service
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1897553 08.05.2024 CET/CEST
| Name | WKN | Börse | Kurs | Datum/Zeit | Diff. | Diff. % | Geld | Brief | Erster | Schluss | |
|---|---|---|---|---|---|---|---|---|---|---|---|
 |
OESTERREICH. POST AG | A0JML5 | Frankfurt | 30,700 | 06.06.24 13:41:16 | +0,200 | +0,66% | 30,550 | 30,850 | 30,650 | 30,500 |
