Belgian Post has recorded a double-digit net profit increase of 53% and revenue growth of 2.2%during 2008 with all major sectors showing satisfactory performances in line with the ongoing
preparation for the postal liberalisation in 2011, according to Belgian Post CEO Johnny Thijs.However, the company has recently been impacted by the financial crisis with a revenue dropof 5.3% in January and February this year. Thijs therefore expects the financial results of 2009 tobe seriously affected by the difficult economic environment.
In 2008, the postal operator has generated a turnover of €2.62 billion which equals anincrease of 2.2% compared to 2007. The net profit went up dramatically by 53% from €117 million in2007 to €179 million last year. The EBIT also showed good double-digit growth of 22%.
The year 2008 was marked by the continuous implementation of all transformation andmodernisation projects lined up in the company’s Strategic Plan. The parcel activities have beenthus regrouped as a whole in a consistent structure while the programmes regarding post officeclosures and the opening of Poste Points were carried out as planned.
By the end of 2008, La Poste counted 796 post offices and 558 Poste Points bringing it to atotal of 1354 service points. This figure even surpasses the 1.300 service points stipulated in theManagement Contract with the state.
La Poste has been preparing for postal liberalisation since 2002. Projects such as Géorouteor the transformation of the sales network allowed the company to cut costs and increaseefficiency. The five sorting centres have been renewed and equipped with the latest technologies.
The diversification of the activities continued in 2008, especially with the introduction ofnew products from Taxipost, La Poste’s express and parcel subsidiary and Distripost offeringdelivery of all kinds of boxes.
“The preparation of La Poste for the total postal liberalisation in 2011 is going accordingto plan,” said Thijs during the company’s press conference.
“However, we need to continue the modernisation of the working methods and structures to beready to face the competition from other operators on the market from 2011 onwards,” he added
All in all, Belgian Post said that it has developed well in terms of finances, operationsand customer satisfaction throughout the last years.
After having generated heavy losses in 2002 and 2003, the postal company has successfullymanaged to balance its finances. Since 2003, the turnover rose 17% while the EBIT has improved froma €79 million loss to a €222 million profit.
In terms of operations, the company has also considerably improved since 2002. The qualityof mail delivery the next day has improved in 2008 to 95.3% from 85% in 2003. Customer satisfactionreached 82% rising from 75% in 2003.
“We still have a long way to go before being fully prepared. The good results of 2008shouldn’t distract us from pursuing the changes planned. Precise cost management will be necessaryin 2009 considering revenues in January and February dropping 5.3%. The crisis is thus becomingnoticeable in our sector as well and we need to stay vigilant as ever,” Thijs concluded.
