Bpost has reported solid results for the first quarter of 2015 with parcel growth compensating for the ongoing mail decline.
The Belgian postal operator increased domestic parcel volumes by 10.2%, which was faster than the 7% rise achieved in 2014. Growth was driven by e-tailers and good performance in C2C. As anticipated, parcels revenue growth of 6.1% was impacted by a negative price/mix effect of -3.7% mainly due to a mix effect relating to the strong growth of e-tailers benefiting from lower prices. The segment’s revenues increased 6% to €39.5 million.
At the same time, international parcel revenues grew by 33% to €41.2 million, driven by continued growth from the core business lanes from the US and China but shipments to China dropped back slightly.
Domestic mail volume declined by 5.3%, compared to -4.4% in 2014, due to weakness in advertising mail sales and ongoing e-substitution. Mail revenues dropped 3.4% to €371 million.
Overall, bpost revenues dropped by 1.6% to €617 million but costs were reduced by 2.2%, and operating profits were stable at €151.6 million. Net profit was down 2.4% at €96.6 million.
CEO Koen Van Gerven commented: “I am very pleased with the strong performance in parcels and the excellent results we delivered on our cost savings plans over the first quarter. Both effects allowed us to fully absorb the reduction in compensation received from the Belgian State for SGEI and led to a stable EBITDA for the quarter, despite the sharper decline of the domestic mail volumes.
“This quarter’s performance has proven once again that our strategy is bearing fruits and that bpost is well prepared to face the headwinds in 2015. This is in line with our outlook for the year and we re-iterate it.”
