PostNL has turned in what it describes as "solid" second quarter results and reconfirmed its full year 2015 outlook.
The company’s addressed mail volume declined by 11.2% (down 9.1% when adjusted for working days and elections) but parcel volumes grew by 7.1% and international business was up 8 %.
PostNL's statement made no reference to the strike action by self-employed parcel deliverers which hit its operations for several days last month.
Commenting on the Q2 results, Herna Verhagen, CEO of PostNL, said: “Overall, the second quarter performance further solidified the base for delivering the full year outlook. We reconfirm that the second half year will be better than last year, helped by extra working days in the last quarter and the phasing in cost savings and volumes. We remain on track to achieve our outlook for 2015."
Summarising some recent developments, she remarked that "in Parcels, we took an important step towards a responsible and competitive delivery model by offering all independent parcel deliverers the option to enter the company's employ or remain self-employed with increased pay. In the United Kingdom, PostNL and management of Whistl have reached an agreement on the main conditions for a management buy-out."
She continued: "In Mail in the Netherlands, price increases and cost savings compensated part of the volume decline. Parcels continued its solid performance with volume up 7%, helped by growth in its cross-border activities. The result in International, now reported excluding the United Kingdom, further improved, mainly explained by the better performance of Germany. The strategic review of our German and Italian operations is in progress.
Verhagen noted "the continued satisfactory progress" in PostNL's financial positon. PostNL is expecting a full year underlying cash operating income between €280 million and €320 million.
"Net cash from operating and investing activities moved in line with expectations. Furthermore, we redeemed the Eurobond that expired in June, fully from our cash position. Our consolidated equity position benefited both from the increased value of our stake in TNT Express as well as from the increase in interest rates.
"Our strategy update is scheduled for 3 November 2015. We will then present our view on our business developments and an outlook for the years to come,” Verhagen added.
As a result of the progress made on the strategic review of International, management classified the activities in the United Kingdom as ‘discontinued’ at half year-end, the Dutch group stated.
In July 2015, PostNL and management of Whistl reached an agreement on the main conditions for a management buyout.
"The transaction will allow Whistl to further develop its profitable activities and strengthen its position in the United Kingdom. As part of the agreement PostNL will retain 17.5% of the shares in Whistl and will continue to support the business as a shareholder. The transaction is expected to close in 2015. Completion of the transaction is subject to finalisation of the financing and final documentation."
