PostNL Q3 – significant drop on 2020 profits

As e-commerce parcel volume growth continues to slow, PostNL posted third financial quarter results that are significantly down on the same period in 2020. Operating profit (EBIT) was €23 million in Q3, much lower than the €36 million in the same period in 2020.

“In the third quarter of the year, the changes in VAT for small goods outside the EU and other regulation in China had a stronger temporary negative impact on international volumes than anticipated, and put pressure on the performance of both Parcels and Mail in the Netherlands,” Chief Executive Herna Verhagen said in a statement.

E-commerce volumes still remain higher than pre-pandemic levels, but in the quarter PostNL saw volumes grow by 1.6% over last year thanks in part due to the reopening of bricks and mortar stores after lockdown restrictions were eased.

Growth in e-commerce picked up later in the quarter and is expected to continue, the company said, “with some uncertainty related to Covid-19 and the changes in VAT regulation.”