The French postal operator Groupe La Poste is on course for a double-digit rise in operatingprofits this year thanks to good growth for its express and parcels businesses and stable mail
activities. Changes are meanwhile taking place at subsidiaries Chronopost and Europe Airpost.The group announced that it achieved a half-year operating profit of EUR 829 million onrevenues up 3.7% at EUR 10.5 billion (on a like-for-like comparison). Net profits ended at EUR 504million. The profit figures are difficult to compare with last year since the group is nowaccounting on IFRS standards, with a number of special effects compared to the first half of 2006.
La Poste stated that the results are “in line” with its planning targets, and reiterated itsaim of achieving a 12% rise in operating profits and a 5.8% operating profit margin this year. Itinvested EUR 590 million in the half-year, including EUR 105 million for express acquisitions.
The mail business increased half-year revenues by 2.6% to EUR 5.95 billion. Volumes were “virtually stable” compared to the general downward trend in mail traffic across Europe, whilerevenues benefited from new direct marketing customers and added-value products for consumers, LaPoste pointed out.
The express division (GeoPost) increased revenues by 8.4% (6.4% on a like-for-like basis) toEUR 1.54 billion. GeoPost continued its international expansion in the first half-year, includingacquisitions of 50% in South African company Laser and 25% in Turkey’s Yurtici Kargo, La Postestated. The French domestic parcels business (ColiPoste) increased revenues by 6.5% to EUR 646million thanks to a surge in e-commerce business.
Meanwhile, French business newspaper Les Echos reported that the new head of Chronopost,Christian Emery, has changed two key points of the French express operator’s ongoing restructuringplan. The new EUR 50 million national hub at Chilly-Mazarin, south of Paris, due to open in October2007, will only gradually go into full service over the following six months, the newspaper wrote.In addition, bulk handling of parcels will be extended through the network of 68 locations.Chronopost will in future focus on next-day express deliveries within France, with services basedon deliveries by 10:00 or 13:00, Les Echos said.
Separately, French media have reported that La Poste is in exclusive talk to sell its smallairline Europe Airpost (formerly Aeropostale) to Algerian-owned aviation company Aigle Azur. LesEchos said Aigle Azur had offered EUR 47 million for the airline but staff were concerned about jobsecurity and future working conditions. An earlier plan to sell it to a South African company fellover after a pilots’ strike.
La Poste plans to dispose of the domestic mail airline in order to concentrate on sendingexpress mail and parcels by high-speed train through a new subsidiary to be formed with French railoperator SNCF. The airline, with 25 planes and 400 staff, made a profit of EUR 15 million onrevenues of EUR 240 million in 2006.
