The parcel challenge for bpost - Companies

The parcel challenge for bpost – Companies

bpost’s strategy is stuck.

The year did not start well for bpost. His strategy stuck. This is based on the growth of parcel deliveries and e-commerce to compensate for the inexorable erosion of mail. However, in the first quarter, while the mail continues to melt (-5.4%), the parcel fell by…

The year did not start well for bpost. His strategy stuck. This is based on the growth of parcel deliveries and e-commerce to compensate for the inexorable erosion of mail. However, in the first quarter, while mail continued to decline (-5.4%), parcels fell by 14.8% in volume in Belgium. In particular because Amazon, a major customer, entrusts fewer deliveries to bpost and the e-commerce market is facing a post-covid decline. The group is reducing damage thanks to good logistics deals in the United States (+11% in revenue). Overall revenue was stable (1.038 billion euros, +1.8%). These headwinds combined with cost inflation, in particular with the indexation of salaries, lead bpost to envisage a lower Ebit (profit before taxes and interest) for 2022. It was anticipated between 280 and 310 million euros and could melt 40 million, according to the company. Dirk Tirez, the CEO, promises to reduce operational and central costs. He is counting on the growth of the American business via the Radial subsidiary to stabilize the accounts. Acquired in 2017 and painstakingly restructured, Radial has gone from the status of a cannonball to that of an oxygen balloon for bpost. A very close competitor, PostNL, published results in the same tone, with a similar profit warning, a sharp decline in revenue and a greater decline in parcels and mail.

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