bpost parcels don’t quite offset mail volume decline

Driven by a 16.9% growth in parcels in Belgium and Netherlands (BeNe), bpost Group operating income hit €906.8 million in Q1, 2019. Collapsing mail volumes held overall growth back to minus 1.1% in normalised EBIT.

Koen Van Gerven, CEO, commented: “Thanks to the efforts of all our teams, both in Belgium and in the other countries where we operate, our first quarter 2019 group results are overall in line with expectations laid down in our full year guidance. We continued to make good progress on our transformation towards a reference e-commerce logistics operator, with nearly half of our revenues being generated by Parcels & Logistics.

Parcels volume and revenue development in our Belgium-Netherlands home region continued to be strong. Parcels & Logistics North America was impacted, as anticipated, by the fallout of Radial’s 2018 client churn and repricing despite stringent cost control. Mail & Retail’s volume decline was more pronounced than anticipated, and was only partly compensated by price increases. These developments emphasise the importance of the modified distribution model to align rapidly changing consumer needs with operational challenges. With the first quarter in line with expectations, I can reconfirm that we are on track to realise our full year guidance of normalised EBIT above EUR 300 million and I thank all bpost’s employees for their hard work.”

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