Higher volumes and strategic acquisitions helped La Poste’s parcels division to improveoperating profits by over 20% in the first half of 2011.
The Parcels/Express division, covering the GeoPost group and French domestic B2C operatorColiPoste increased operating profits by 20.6% to €206 million between January and June 2011, thecompany’s newly-published half-year report shows. The operating profit margin improved by 0.9percentage points to 8.2% while revenues rose by 7.5% to €2,505 million, which was a 6.5%underlying rise. Volumes were 5.1% higher (+4.5% on a like-for-like basis).
GeoPost increased volumes by 6.5% (+6% underlying) and revenues by 8.5% to €1,771 million.Domestic volumes grew by 6.3% while international volumes were 9.7% higher.
“This growth was carried by all the GeoPost subsidiaries with the exception of Spain and Irelandwhich are suffering from a difficult economic environment,” La Poste commented.
The moderate overall price mix improvement of 0.4% showed the difficulty of securing marketacceptance of higher prices in a difficult environment against a background of fuel-related priceadjustments of more than 1%, it added.
Other positive effects were the acquisition of an additional stake in South Africa’s DPD Laser,last year’s integration of IBC in the USA and positive currency effects of 0.3%, largely due toSwitzerland, it added.
GeoPost took control of DPD Laser on June 30, 2011, back-dated to April 1, with the acquisitionof a further 25% of the company shares, La Poste stated. This increased the holding from a 50-50joint venture to 75% majority ownership, meaning that the company is now consolidated within theGeoPost results. In addition, the group reinforced its position within SEUR GeoPost in Spain andtook control of SEUR Internacional.
French B2C parcels unit Coliposte increased revenues by 5.3% to €734 million and its volumesrose 1.8% in the first half-year, the report stated. Its So Colissimo product, launched last yearand offering a range of delivery options, now has some 700 clients.
Groupe La Poste as a whole increased group revenues by 1.9% to €10.8 billion in the half-yearending June 30, 2011. Operating profits fell by 25.7% to €504 million, although this was only 2.6%lower excluding one-off effects and Greek debt risks, while net profits were 21.2% lower at €377million, which was a 2.1% fall on an underlying basis.
