2015-11-02 09:00:00 CET
2015-11-02 09:00:02 CET
REGULATED INFORMATION
Posti Group Corporation - Interim report (Q1 and Q3)
Posti Group’s result satisfactory while net sales decreased
POSTI GROUP CORPORATION INTERIM REPORT, JANUARY-SEPTEMBER 2015
NOVEMBER 2, 2015 AT 10:00 (EET)
July-September 2015
-- The Group's net sales decreased by 14.2% and amounted to EUR 373.5 (435.1)
million in July-September. Comparable net sales, excluding the
international freight business, decreased by 7.5%.
-- Net sales decreased by 4.2% in Postal Services, by 21.4% in Parcel and
Logistics Services and by 37.8% in Itella Russia, and increased by 0.6% in
OpusCapita. Measured in local currency, Itella Russia's net sales decreased
by 8.6%. The comparable net sales of Parcel and Logistics Services
decreased by 4.3%.
-- The operating result before non-recurring items improved to EUR 9.6 (6.8)
million, or 2.6% (1.6%) of net sales.
-- The operating result before non-recurring items declined to EUR 5.7 (7.5)
million in Postal Services, to EUR -1.4 (2.7) million in Itella Russia and
to EUR 4.2 (5.1) million in OpusCapita. The operating result before
non-recurring items improved to EUR 2.1 (-6.8) million in Parcel and
Logistics Services.
-- The operating result was weighed down by non-recurring items amounting to
EUR -11.8 (-14.1) million, including EUR -7.6 million in impairment losses
in Russia and an EUR -8.5 million adjustment in gain on real estate sale
concluded on April 22, 2015.
-- The operating result for the third quarter improved and amounted to EUR
-2.2 (-7.4) million, or -0.6% (-1.7%) of net sales.
January-September 2015
-- The Group's net sales decreased by 11.1% and amounted to EUR 1,215.6
(1,367.0) million in January-September. Comparable net sales, excluding the
international freight business, decreased by 5.9%.
-- Parcel services volume grew by 4%. Mail delivery volumes continued to
decline as expected. In Finland and Russia, the situation in the logistics
market remained weak. The ruble depreciated by 47% compared to the previous
year.
-- Net sales decreased by 3.3% in Postal Services, by 16.8% in Parcel and
Logistics Services and by 32.9% in Itella Russia, and increased by 0.5% in
OpusCapita. Measured in local currency, Itella Russia's net sales decreased
by 6.8%. The comparable net sales of Parcel and Logistics Services
decreased by 3.2%.
-- The operating result before non-recurring items declined and amounted to
EUR 23.3 (27.3) million, or 1.9% (2.0%) of net sales.
-- The operating result before non-recurring items improved to EUR 31.6 (29.0)
million in Postal Services and to EUR 1.0 (-9.1) million in Parcel and
Logistics Services. The operating result before non-recurring items
declined to EUR -4.3 (0.4) million in Itella Russia and to EUR 11.1 (16.6)
million in OpusCapita.
-- The operating result for the period was improved by non-recurring items in
the amount of EUR 22.9 (-32.4) million. The most significant of these items
was a real estate sale, on April 22, 2015, where Posti Group sold and
leased back its postal centers in Tampere, Kuopio and Oulu, as well as its
warehouse in Tuusula.
-- The operating result for January-September was EUR 46.2 (-5.1) million, or
3.8% (-0.4%) of net sales.
-- Cash flow from operating activities was EUR 29.2 (50.7) million.
-- In June, the Board of Directors of Posti Group approved the company's
strategic goals for 2015-2017.
-- On April 30, 2015, Posti Group Corporation sold its road freight operations
in Sweden, Norway and Denmark, as well as its international freight
business in Finland, to the Danish company NTG Nordic Transport Group.
-- Posti launched a renewal of its retail network. Going forward, Posti will
operate 21 postal outlets of its own, and services will be transferred to
partners at 77 outlets.
-- On April 30, 2015, OpusCapita acquired the Swedish companies
Kredithanterarna and Svenska Fakturaköp.
-- Vice President of the Operations unit Yrjö Eskola was appointed as a member
of the Posti Group Corporation Executive Board as of July 1, 2015.
-- Patrik Sallner was appointed CEO of OpusCapita. Sallner took up his post as
CEO on October 5, 2015.
-- The name of the company was changed to Posti Group Corporation on January
1, 2015. From January 1, 2015, the names of the business groups are: Postal
Services, Parcel and Logistics Services, Itella Russia and OpusCapita.
Since the beginning of 2015, Posti Group Corporation's result is reported
on the basis of the new business groups.
7-9 7-9 1-9 1-9 1-12
--------------------------------------------------------------------------------
2015 2014 2015 2014 2014
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Net sales, EUR million 373.5 435.1 1,215.6 1,367.0 1,858.7
--------------------------------------------------------------------------------
Operating result (non-IFRS), EUR 9.6 6.8 23.3 27.3 50.8
million*
--------------------------------------------------------------------------------
Operating result (non-IFRS), %* 2.6 1.6 1.9 2.0 2.7
--------------------------------------------------------------------------------
Operating result (EBIT), EUR million -2.2 -7.4 46.2 -5.1 5.8
--------------------------------------------------------------------------------
Operating result (EBIT), % -0.6 -1.7 3.8 -0.4 0.3
--------------------------------------------------------------------------------
Result before taxes, EUR million -7.0 -10.1 37.2 -12.2 -4.6
--------------------------------------------------------------------------------
Result for the period, EUR million -1.1 -9.1 31.7 -8.9 -4.4
--------------------------------------------------------------------------------
Return on equity (12 months), % 5.9 1.4 -0.7
--------------------------------------------------------------------------------
Return on invested capital (12 months), 6.3 1.3 1.0
%
--------------------------------------------------------------------------------
Equity ratio, % 48.8 47.2 45.9
--------------------------------------------------------------------------------
Gearing, % 8.1 19.9 17.2
--------------------------------------------------------------------------------
Gross capital expenditure, EUR million 11.8 12.0 43.7 42.9 57.5
--------------------------------------------------------------------------------
Average number of employees 22,482 25,132 24,617
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
*) Non-IFRS = excluding non-recurring
items
--------------------------------------------------------------------------------
Heikki Malinen, President and CEO:
“Posti Group Corporation's operating result in July-September improved to EUR
9.6 million from EUR 6.8 million in the corresponding period last year. The
improved result is a fairly good achievement under the circumstances, as the
Group's net sales continued to decline and the market situation remained very
difficult.
The most significant factor behind the better result is the improved result of
the Parcel and Logistics Services business group. The operating result before
non-recurring items returned to profitable territory in July-September and
through the first three quarters of the year in spite of the decline in net
sales. This gives us confidence that we are moving in the right direction.
We have made determined efforts in the logistics business to improve the
efficiency of our loss-making operations. As part of these efficiency
improvement measures, the Group has divested its international freight business
and scaled back its network of terminals in Finland. The business group's
result was also affected favorably by the increased demand for parcel services.
With regard to logistics, we can now say that all of the major restructuring
measures have been completed. Logistics will remain a core business for Posti,
and one of the objectives of our new strategy is to seek synergies and new
growth in local logistics, food logistics and warehouse logistics services.
We are continuing to implement efficiency improvement measures throughout the
Group under the EUR 75 million program that is currently underway. Efficiency
improvement measures are necessary for compensating for the decline in net
sales. In postal services, the operating result showed a seasonal decline in
July-September. Cost adaptation measures have not been sufficient to compensate
for the loss of net sales resulting from the decline in volume.
As competition in the postal services market increases and new players enter
the industry, we must maintain Posti's competitiveness and cost-effectiveness
as a service provider. Our current collective agreement is too inflexible to
respond to the new needs that today's customers expect us to satisfy with
regard to the services we provide. The new collective agreement must facilitate
greater flexibility in shift planning to allow us to better react to changes in
customer demand, avoid delivery disruptions, and develop new service business.
In spite of the entry of new delivery service providers in the postal industry,
our greatest challenge remains the trend of digitization, which will move
letters, invoices and publications to the online realm at a tremendous rate in
the coming years. The new strategy we announced in the summer is Posti's
roadmap for operating in a digital Finland. Rather than simply adapting to
these changes, Posti aims to actively take advantage of digitization in its
services, production operations and operating methods.”
APPENDICES
Posti Group's Interim Report in full
FURTHER INFORMATION
Heikki Malinen, President and CEO, and Sari Helander, CFO
Tel. +358 20 452 3366 (MediaDesk)
DISTRIBUTION
NASDAQ OMX Helsinki
Key media
www.posti.com/financials
FINANCIAL CALENDAR IN 2016
Financial statements for 2015: February 12, 2016
January-March: April 29, 2016
January-June: July 18, 2016
January-September: October 31, 2016
IMAGES AND LOGOS
www.posti.com/media
Posti Group is your first choice in postal, logistics and e-commerce services.
We manage the flow of commerce and everyday life in 10 countries. Our net sales
in 2014 amounted to EUR 1,859 million. We employ approximately 23,000
professionals who serve our customers in Finland under the name Posti and in
other countries under the name Itella. All our services in Finland are carbon
neutral. www.posti.com.
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