- The Group’s net sales decreased to EUR 369.1 (378.6) million, -2.5% (0.7%).
- The Group’s adjusted EBITDA increased to EUR 23.1 (22.4) million, 6.3% (5.9%).
- The Group’s EBITDA increased to EUR 22.4 (17.9) million, 6.1% (4.7%).
- The adjusted operating result increased to EUR 5.8 (3.6) million, or 1.6% (1.0%) of net sales.
- The operating result increased and amounted to EUR 5.1 (-35.0) million, representing 1.4% (-9.2%) of net sales.
The parcel volume of Finland and the Baltic countries increased by 9%, with 12% growth in consumer (B2C) parcels. Measured in waybills, excluding food logistics, Posti’s domestic freight grew by 2%. The number of addressed letters decreased by 12% in Finland.
Posti is renewing its organization and operating model to better correspond to market needs and e-commerce growth. As a part of the renewal, Posti announced on August 27 that Posti Group’s business will be divided into five business groups, of which three will be new. Starting January 1, 2019, the business groups will be: Postal Services, Parcel & eCommerce, Logistics Solutions, OpusCapita and Itella Russia.
Posti continues its growth in logistics according to its strategy. Posti announced on September 28 that Posti, MB Funds and other shareholders have signed an agreement Posti acquiring the entire share capital of Suomen Transval Group Oy. Transval is one of the leading in-house logistics service providers in Finland. As a result of this acquisition, Posti would become a significant operator in logistics outsourcing solutions in Finland. The closing of the acquisition is subject to an approval by the Finnish Competition and Consumer Authority.
The Supreme Administrative Court of Finland rendered an order on September 27, 2018 confirming that Posti’s pricing concerning the delivery of unaddressed advertising mail during 2007-2013 was not in violation of the competition law.
Outlook for 2018 remained unchanged
The net sales in 2018 are expected to remain on par with 2017 or to decrease slightly. The Group’s adjusted operating result is expected to remain on a par with 2017 or decrease slightly. Capital expenditure, excluding acquisitions and disposals, is expected to decrease slightly.
- The Group’s net sales decreased to EUR 1,176.1 (1,194.7) million, -1.6% (3.8%)
- The Group’s adjusted EBITDA decreased to EUR 74.2 (77.7) million, 6.3% (6.5%).
- The Group’s EBITDA increased to EUR 69.9 (60.8) million, 5.9% (5.1%).
- The adjusted operating result increased to EUR 23.4 (19.4) million, or 2.0% (1.6%) of net sales.
- The operating result increased and amounted to EUR -11.2 (-32.5) million, representing -1.0% (-2.7%) of net sales.
- Net debt to adjusted EBITDA was 0.0x (-0.1x) on September 30, 2018.
The parcel volume of Finland and the Baltic countries increased by 11 %, with 18% growth in consumer (B2C) parcels. Measured in waybills and excluding food logistics, Posti’s domestic freight grew by 5%. The number of addressed letters decreased by 9% in Finland.
As a result of management evaluation of OpusCapita’s business plan, including the execution schedule and required investments to implement the plan and the risk-premium of the discount rate, an impairment loss on goodwill of EUR 30.0 million was recognized in the first quarter of the year.
In March 2018, the Supreme Court did not grant leave to appeal requested by the claimants in litigation concerning the value added tax on postal services against Posti. This means that the decision given in September 2017 by the Court of Appeal of Helsinki to dismiss the complaint as requested by Posti and to compensate the legal expenses of Posti remains final.
During the H1, Posti’s Finnish Debt Collection business was sold to Intrum, the Norwegian Debt Collection business to Visma and the Swedish Debt Collection business to Collectia Sverige AB.
In April 2018, Itella Russia divested its MaxiPost courier business to the Moscow-based Strategic Business Alliance. According to its strategy, Itella Russia focuses on its core businesses, contract logistics and transportation.
In May, Posti Group Corporation signed a new EUR 150 million syndicated revolving credit facility which replaced the previous EUR 150 million facility. The new facility has a maturity of five years with an option to extend fortwo years.
Source: Posti Group