Bpost limits breakage in the second quarter - Companies

Bpost limits breakage in the second quarter – Companies

Bpost limited the damage in the second quarter, particularly in the face of inflation and galloping energy and transport prices. Its earnings before interest and taxes (adjusted Ebit) amounted to 82.6 million euros, down 22.5% compared to the same period last year – when bpost’s services were particularly popular in full coronavirus health crisis – but remain better than expected by analysts, according to the company’s quarterly results on Thursday.

The group’s turnover amounts to 1.04 billion euros, “in line with last year (-0.2%)”, notes bpost.

In Belgium, while the e-commerce giant Amazon decided to take charge of its parcel deliveries, the volume of parcels transported by bpost fell by 12.9% in the second quarter. Without the impact of Amazon, the decline is limited to 2.9%.

Mail also follows a downward curve, with 7.5% fewer messages delivered.

Bpost did better than expected, however, thanks in particular to the good performance of its North American logistics subsidiary Radial (+18.3%). The second quarter thus exceeded Ebit’s initial forecast for the full year 2022 published in February, rising from 280 to 310 million euros.

Bpost is also pleased to have maintained stable operating costs, in particular thanks to the increase in VAT and a reduction in staff.

Regarding its outlook for the future, the company is cautious, pointing to rising inflation in Belgium and uncertain consumer behavior as headwinds, while parcel volumes normalize after the pandemic.

“While even stronger headwinds from inflation, indexation of wages, transport and energy costs, and loss of consumer confidence persist globally and are a source of uncertainty for the coming quarters, we continue to take action at all levels” by intensifying sales efforts, increasing prices where necessary and reducing costs” in order to phase and mitigate these negative impacts while positioning our company to achieve good results in the medium term”, concludes the CEO of bpost, Dirk Tirez.

The group’s turnover amounts to 1.04 billion euros, “in line with last year (-0.2%)”, notes bpost. In Belgium, while the e-commerce giant Amazon decided to take charge of its parcel deliveries, the volume of parcels transported by bpost fell by 12.9% in the second quarter. Without the impact of Amazon, the decline is limited to 2.9%. Mail also follows a downward curve, with 7.5% fewer messages delivered. Bpost did better than expected, however, thanks in particular to the good performance of its North American logistics subsidiary Radial (+18.3%). The second quarter thus exceeded Ebit’s initial forecast for the full year 2022 published in February, rising from 280 to 310 million euros. Bpost is also pleased to have maintained stable operating costs, in particular thanks to the increase in VAT and a reduction in staff. Regarding its outlook for the future, the company is cautious, pointing to rising inflation in Belgium and uncertain consumer behavior as headwinds, while parcel volumes normalize after the pandemic. “While even stronger headwinds from inflation, indexation of wages, transport and energy costs, and loss of consumer confidence persist globally and are a source of uncertainty for the coming quarters, we continue to take action at all levels” by intensifying sales efforts, increasing prices where necessary and reducing costs” in order to phase and mitigate these negative impacts while positioning our company to achieve good results in the medium term”, concludes the CEO of bpost, Dirk Tirez.

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