PostNL has raised its full-year profit outlook to between €280 million and €310 million thanks to stronger than expected growth in recent months.

Normalised EBIT (operating profit) grew by 17% to €63 million in the second quarter.

In April the Dutch postal operator upped its earnings guidance to at least €250 million thanks to lockdowns across the country boosting parcel volumes.

Parcel volumes increased by 11.4% in the second quarter of the financial year, though profits were below expectations. Domestic mail grew by 4.2% though revenues fell in the period.

“Due to the impact of COVID-19, consumer behaviour has changed, with a step-up in online shopping and an acceleration in e-commerce,” Chief Executive Herna Verhagen said, adding that the company would expand its capacity earlier and more than anticipated.

Thanks to confidence in its income, PostNL plans to invest an additional €450 million to boost capacity in its parcel locker network, that it is already growing rapidly.

Parcel volumes jumped 11.4% in the second quarter, bringing revenues above analysts’ estimates, although profits missed expectations. Volumes grew 4.2% in its Dutch mail business, but revenues fell during the period.