bpost plans to be “international e-commerce logistics player”

bpost, the Belgian postal operator has declared its intent to “become an international e-commerce logistics player”. The plan is for 45% of its revenues generated by activities outside Belgium and 60% of revenues generated by parcels and logistics activities by 2022.

In a statement, bpost said that it will use its Capital Markets Day to outline a “redefined vision” for 2022 – which will include three strategic priorities as well as mid-term objectives for the period 2018-2022.

The company explained why it is look to transform and diversify its business: “As the environment and customer needs are changing rapidly, bpost’s traditional business in Belgium is under pressure with mail volume decline accelerating (up to -7% expected in 2018). Therefore bpost has to capture the growth of parcels (double digit volume growth expected in 2018) and logistic activities related to e-commerce in the Belgium-Netherlands (Be-Ne) region, Europe, North America, and Asia.

Koen Van Gerven, Group CEO of bpost, commented: “Our 2022 vision is to be, beyond mail, an efficient global e-commerce logistics player anchored in Belgium.

“Our transformation will thus continue in order to adapt to evolving customer needs in our fast-paced environment and extended Be-Ne home region, and to ensure a sustainable future for our company.”

bpost said its three strategic priorities are:

1. Remain an efficient provider of mail, retail and public services

2. Grow profitably in Parcels & Logistics business in Europe and Asia

3. Deliver on the Radial investment thesis in North America

bpost said that the strategic priorities “translate into revised medium-term financial objectives”, key elements of which include:

• Normalized EBIT 2018: Guidance of low end of €560-600m normalized EBITDA equivalent to normalized EBIT of €400-440m.

• Normalized EBIT 2019-2022: Ambition to achieve organic normalized EBIT in the range of €390m to €440m, with 2019 expected to be the low end of the range.

Van Gerven added: “bpost can rely on a strong track record of successful transformation experience. Furthermore, operational excellence is embedded throughout our company and has been developed over more than a decade with all stakeholders.

“I am confident and delighted that we will successfully conduct the next phase of our transformation as we have a strong management team with well-defined agenda in each business yet to successfully conduct the next phase of our transformation and a clear and, shared 2022 vision for our Group”.