Posti Group Corporation half-year financial report January–June 2022
Unless otherwise stated, the figures in brackets refer to the corresponding period in the previous year.
April–June
Financial highlights
Net sales grew by 5.0% to EUR 411.3 (391.6) million.
Adjusted EBITDA decreased to EUR 39.5 (44.2) million, or 9.6% (11.3%) of net sales.
EBITDA decreased to EUR 38.9 (43.8) million, or 9.5% (11.2%) of net sales.
Adjusted operating result decreased to EUR 8.5 (13.7) million, representing 2.1% (3.5%) of net sales.
Operating result decreased to EUR 7.9 (13.3) million, representing 1.9% (3.4%) of net sales.
January–June
Financial highlights
Net sales grew by 3.4% to EUR 802.4 (775.9) million.
Adjusted EBITDA decreased to EUR 76.0 (88.7) million, or 9.5% (11.4%) of net sales.
EBITDA decreased to EUR 73.3 (88.4) million, or 9.1% (11.4%) of net sales.
Adjusted operating result decreased to EUR 15.0 (28.5) million, representing 1.9% (3.7%) of net sales.
Operating result decreased to EUR 12.3 (28.2) million, representing 1.5% (3.6%) of net sales.
Net debt to adjusted EBITDA was 1.4x (1.2x).
Operational highlights
Slower economic growth, accelerated inflation and operational challenges impacted the profitability of Postal Services negatively, which affected the overall profitability of Posti Group.
Successful acquisitions of Veddestagruppen and Mediatalo Keskisuomalainen Oyj’s early-morning delivery operations increased Group’s net sales.
Fulfillment and Logistics Services net sales increased by 15.4% and were mainly driven by the acquisition of Veddestagruppen.
Total parcel volume in Finland and the Baltic countries decreased by 3% (increased 16%) due to a shift in consumer behavior and slower economic growth.
The combined external net sales of eCommerce and Delivery Services, and Fulfillment and Logistics Services represented 63.2% (61.6%) of the Group’s net sales.
Addressed letters volume continued to decline and decreased by 6% (9%).
The share of mail items covered by the universal service obligation accounted for 2.3% (2.7%) of all Posti’s mail items delivered.
Outlook for 2022
Posti is adjusting its outlook for 2022. The net sales is expected to increase (previously, it was communicated that net sales is to remain on same level). The new outlook states:
In 2022, Posti is expecting its net sales to increase from the previous year. The Group’s adjusted EBITDA in 2022 is expected to decrease. Posti’s net sales from continuing operations in 2021 were EUR 1,595.0 million and adjusted EBITDA was EUR 181.6 million.
The potentially continuing inflation and the increase in interest rates may impact consumer demand. The changes in consumer behavior affect Posti's business and could impact actual results.
The Group’s business is characterized by seasonality. The net sales and operating result in the segments are not accrued evenly over the year. In consumer parcels and Postal Services, the first and fourth quarters are typically strong, while the second and third quarters are weaker. The postal service volume decline is expected to continue.