France’s La Poste today unveiled a strong double-digit rise in profits for 2007 and financialresults that it said brings it closer to rivals Deutsche Post and TNT. It is eyeing acquisitions in
2008.The French postal group increased its operating profit by 36% to EUR 1,285 million last year(+10% on a like-for-like basis), which represented an operating profit margin of 6.2%, up 1.5percentage points. The net profit increased by 16% to EUR 943 million.
Turnover increased 3.4% to EUR 20.8 billion. The mail business increased revenues by 2.1% toEUR 11.57 billion despite a 1% drop in volumes. Revenues from financial services were up 5% to EUR4.7 billion.
GeoPost, the express holding, increased revenues by 6.8% to EUR 3,171 million, thanks to an11% rise in international business and good domestic growth in Central Europe, Eastern Europe andthe UK. The separate French domestic parcels business ColiPoste increased revenues by 7.4% to EUR1.33 billion, driven by e-commerce which now generates more than 10% of sales.
La Poste will for the first time pay a dividend to the French state, which owns 100% of thecompany. The dividend will be EUR 141 million, or 15% of net profits. There will also be aprofit-sharing payment of EUR 26 million to staff, or EUR 102 per employee.
The French group declared that the results, drawn up under IFRS standards, were slightlyahead of budget and the 6.2% operating margin meant the company was approaching the performance ofthe “best European operators” (Deutsche Post and TNT) in terms of profitability.
Looking ahead to 2008, La Poste said it expected to grow in line with its targets. Itexpected to invest a similar sum to last year’s EUR 1.2 billion on “internal” measures such as postoffice modernisation but was also ready to “seize opportunities for acquisitions in each of itsbusinesses”.
La Poste announced earlier this month that it aims to grow its international express andparcels business, build up new mailstream flows and offer new services under a new five-yearstrategic plan covering 2008 – 2012. As part of the “Performance and Confidence” plan, La Posteaims to increase its turnover by 2% a year on average and reach revenues of EUR 23.2 billion by2012. It is targeting an operating profit of about EUR 2 billion and a profit margin of 8.5% in2012.
