Market environment

1. Mail: Basic trend of e-substitution continued in 2015; differentiated development of direct mail items
2. Parcel: Growth of e-commerce; increasing competition and price pressure

Revenue

1. Revenue increase of 1.6% to EUR 2,401.9m
2. Growth in the mail (+0.9%) and parcel (+2.9%) segments

Earnings

1. Operating EBIT of EUR 198.0m (+2.6%)
2. Impairment losses relating to sale of the German trans-o-flex Group
3. Reported EBIT of EUR 89.0m due to one-off effects

Cash flow and dividends

1. Increase in free cash flow before acquisitions/securities to EUR 178.3m
2. Proposal to the Annual General Meeting: Stable dividend of EUR 1.95 per share

Outlook for 2016

1. Stable operating earnings development targeted

OVERVIEW OF AUSTRIAN POST

Austrian Post recorded a solid operating performance in the 2015 financial year. In spite of challenging market conditions, Group revenue rose by 1.6% to EUR 2,401.9m.

The Mail & Branch Network Division achieved revenue growth of 0.9% to 1,501,7m in 2015 in a structurally shrinking market. Once again the basic trends shaping the letter mail and logistics markets in recent years continued in 2015: The volume of addressed mail items is under increasing pressure both on a national and international level due to the substitution of conventional letter mail by electronic communication. Revenue growth was driven by raised postal rates as of March 1, 2015 as well as the impetus provided by the increased handling of international cross border mail volumes.

During the reporting period, the Parcel & Logistics Division generated revenue growth of 2.9% through differing regional developments. The outstanding logistics and service quality of Austrian Post served as the basis for the volume increase of 8% to 80 million parcels. On Austrian Post’s international markets, the parcel business in South East and Eastern Europe developed positively. In contrast, the business development of the German trans-o-flex Group remained below expectations.

For this reason, Austrian Post assessed various strategic options for the logistics company trans-o-flex within the context of an evaluation process carried out in 2015. Austrian Post reached an agreement with strategic investors LOXXESS Group and Schoeller Holding to sell trans-o-flex.
“We have made a clear decision offering good development perspectives for all parties involved”, says Georg Pölzl, Chief Executive Office of Austrian Post. The acquisition is expected to take place in the coming weeks subject to approval of the German Competition Authority. The disposal of trans-o-flex led to a one-off non-cash effect in the consolidated financial statements for 2015, on an adjusted basis the Group reported a good operating result.

Operating EBIT before special effects improved by 2.6% to EUR 198.0m, an upward trend which reflects developments over the first three quarters of the year. EBIT of Austrian Post for the 2015 financial year was negatively impacted by special effects, which consisted principally of two items. Firstly, an impairment of EUR 131.9m was reported, mostly in connection with the sale of the trans-o-flex subsidiary. Secondly, the consolidated financial statements of Austrian Post for 2015 contain a positive net effect of EUR 23.0m resulting from claims related to non-wage costs paid in previous periods. On the basis of the operating EBIT of EUR 198.0m, the above-mentioned one-off effects in 2015 resulted in a reported EBIT of EUR 89.0m. 

Free cash flow before acquisitions and securities totalled EUR 178.3m in 2015, ahead of the comparable figure of EUR 151.7m in 2014. This solid cash flow comprises a good basis for Austrian Post to finance its future investments and dividends. On this basis, the Management Board will propose to the Annual General Meeting that a dividend of EUR 1.95 per share is to be distributed for the 2015 financial year, thus continuing the Group’s attractive dividend policy.

Read More

Source: Austrian Post