Posti Group Corporation Financial Statements Bulletin 2020
- Net sales grew by 16.0% to EUR 455.9 (392.9) million.
- Adjusted EBITDA was EUR 64.1 (34.0) million, or 14.1% ( 8.7% ) of net sales.
- EBITDA increased to EUR 56.0 (32.8) million, or 12.3% ( 8.4% ) of net sales.
- The adjusted operating result improved to EUR 33.5 (4.4) million, representing 7.3% ( 1.1% ) of net sales.
- The operating result improved to EUR 25.4 ( -2.8 ) million, representing 5.6% ( -0.7% ) of net sales.
- Net sales grew by 3.1% to EUR 1,613.6 (1,564.6) million.
- Adjusted EBITDA was EUR 186.5 (152.3) million, or 11.6% (9.7%) of net sales.
- EBITDA increased to EUR 177.6 (140.6) million, or 11.0% (9.0%) of net sales.
- The adjusted operating result improved to EUR 66.1 (36.2) million, representing 4.1% (2.3%) of net sales.
- The operating result improved to EUR 55.0 (18.5) million, representing 3.4% (1.2%) of net sales.
- Net debt to adjusted EBITDA was 1.2x (1.1x).
- The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 31.3 million, i.e. EUR 0.78 per share, will be distributed for the financial year 2020.
- The global COVID-19 pandemic had a significant impact on Posti’s operations in 2020. Posti’s Parcel and eCommerce business group clearly benefitted from the boom of online shopping. At the same time, the rapid decline of mail volumes was further accelerated by the pandemic. Also Posti’s logistics services were negatively impacted by the pandemic.
- The execution of Posti’s transformation continued:
- The number of addressed letters decreased by 16% (16%) in Finland.
- The share of mail items covered by the universal service obligation continued to decrease and accounted for only 3.4% (4.0%) of all Posti’s mail items delivered.
- The total parcel volume in Finland and the Baltic countries increased by 27% (7%).
- The combined net sales of Parcel and eCommerce as well as logistics businesses represented already 57% (52%) of the Group’s net sales.
- Posti’s transformation continued when it acquired Aditro Logistics and KV Turva and divested Posti Kotipalvelut Oy as well as Posti Messaging AB in Sweden and Posti Messaging AS in Norway.
- Posti changed its operating model to accelerate the renewal of its business operations, improve customer experience as well as increase agility and productivity.
- Posti renewed its strategy. According to its strategy, Posti’s strategic goal is to become a modern delivery and fulfillment company with progressive profitability. The core of Posti’s growth is in parcels and contract logistics in Finland, Sweden and the Baltics, along the entire delivery and fulfillment value chain.
The figures in 10-12/2020 and 10-12/2019 as well as 1-12/2020 and 1-12/2019 are not fully comparable because the operations of Aditro Logistics have been included in Posti’s financials as of April 2020, but they are not part of the financials of the comparable period in 2019.
Outlook for 2021
The COVID-19 situation continues to make the macro economic outlook difficult to predict. Because of these exceptional circumstances, Posti’s full-year outlook includes a significant level of uncertainty.
Posti is replacing adjusted operating result with adjusted EBITDA as one of its long-term financial targets. Due to this change, Posti will also give a short-term outlook for the development of its adjusted EBITDA, in addition to net sales.
In 2021, Posti is expecting its net sales to remain at the previous year’s level, excluding possible new acquisitions and divestments. The Group’s adjusted EBITDA in 2021 is expected to decrease from the previous year. In 2020, Posti’s net sales were EUR 1,613.6 million and adjusted EBITDA was EUR 186.5 million.
The Group’s business is characterized by seasonality. Net sales and operating result in the segments are not accrued evenly over the year. In Postal Services and consumer parcels, the first and fourth quarters are typically strong, while the second and third quarters are weaker.
Source: Posti Group