PostNL makes significant progress in transformation programme

While reporting the Dutch mail operator’s Q3 results, the CEO of PostNL Herna Verhagen has said that the company is making ‘significant progress’ in its transformation programme.

In the face of declining mail volumes yet a booming parcels market, PostNL has been undergoing a transformation programme to ensure financial survival in the modern economic and operational environment. This includes a rationalisation of its business interests but also redeployment of many of its staff.

The Dutch postal operator’s CEO said that they hope for a cash operating income of between €220 – €260 million in 2016. It is currently assessing its businesses in Germany, and may yet divest many of its interests there. However, should it continue to operate there it could see an underlying cash operating income of as much as €335 million in 2020.

Verhagen said of the transformation programme’s success, “We have made significant progress in transforming PostNL into an efficient, flexible, customer oriented and financially healthy company over the past few years. By building on our core competences, we are prepared for the continuously changing markets in which we operate.”

One of the key factors the company must consider is the mail operation, which is set to decline significantly in the coming years. PostNL intends on keeping it as profitable as possible whilst working on the parcels side of the business, which is set to grow. Verhagen said of the parcels business, “In Parcels our focus is on creating further profitable growth by strengthening our position as leading e-commerce logistics company in the Benelux.”

As with virtually every other mail operator in the world, PostNL is working hard to compensate for the changing operational environment brought about by the digital age. Remaining in profit and giving good returns to its shareholders is important in achieving this.