PostNL’s total turnover was 789 million euros, compared to 681 million euros a year earlier. In the parcels division, turnover rose by no less than a quarter to 516 million euros. PostNL’s normalized profit came to 54 million euros. A year earlier that was still 39 million euros.
“Sunny with some clouds”
This is the opinion of reporter Yteke de Jong: “PostNL has posted a strong result, because the parcel division has grown rapidly due to the corona crisis. However, nothing is in store for shareholders this year, as the dividend has been suspended due to the acquisition of rival Sandd. There are some dark clouds: the number of letters in the past quarter shrank much faster than expected, which means that important turnover has leaked. Another cloud is the destruction of the license that the Minister of Economic Affairs has given for the acquisition of Sandd. ” @ytekedejong
In the post division, PostNL saw the volume decrease by 16 percent. Although people sent significantly more greeting cards to family and friends in the first quarter, mail sent was less in the second quarter, particularly as many companies recently decided to delay mailings. In the first half of the year, the postal company saw more people send each other a ticket online, and the use of the online stamp code increased by 70 percent compared to last year.
For the year as a whole, the company still expects an operating result well above 110 million to 130 million euros, as previously forecast in a trade update in June. “Although the uncertainty surrounding the global impact of the pandemic appears to be increasing, we are confident in our ability to deliver a very solid performance for the whole of 2020,” said PostNL CEO Herna Verhagen.
Verhagen spoke of a “particularly good result” and emphasized, among other things, that the free cash flow improved strongly in the quarter to 93 million euros, compared to 7 million euros last year. In her view, the merger of PostNL and Sandd postal networks is ahead of schedule in terms of expected benefits and synergies.
The merger contributed EUR 15 million to normalized profit in the second quarter. According to financial director Pim Berendsen, that amount demonstrates the need for consolidation. “Without the economies of scale, that amount would have been negative and we would not be able to keep the postal network accessible and reliable. Especially now that corona in post has an additional volume drop of 5 percent.” The Dutch government appealed against the court’s decision that overturned the earlier approval of the merger of the postal companies. PostNL has also decided to appeal.
Every morning the latest financial news in your inbox?
Invalid email address. Please enter again.
You can unsubscribe with 1 click