France’s Groupe La Poste had higher parcels profits and stable mail results in the first half of2011 but Greece hit results at financial unit La Banque Postale, resulting in lower overall group
profits. Full-year profit targets were confirmed, however.Group revenues rose 1.9% to €10.8 billion in the half-year ending June 30, 2011, which was a1.1% increase on a like-for-like basis, the company announced on Friday.
Operating profits fell by 25.7% to €504 million, although this was only 2.6% lower excludingone-off effects and Greek debt risks, while net profits were 21.2% lower at €377 million, which wasa 2.1% fall on an underlying basis. The reported operating profit margin was 4.7%.
CEO Jean-Paul Bailly commented: “The first half-year confirms the strength of our business modeland strategy based on a diversified group.”
The group increased investments to €572 million in the half-year, the bulk of them in the mailand parcels/express businesses. These included completion of the long-term mail modernisationproject, renovation of 181 post offices, additional depots and hubs for GeoPost and Coliposte andacquisition of a controlling holding in DPD Laser in South Africa.
The Mail division had a fractional 0.4% underlying revenue decline to €5.94 billion. Mailvolumes declined 3.4% but were compensated by favourable pricing and the growth of mailsubsidiaries holding Sofipost. Mail profits were stable at €489 million, representing an 8.2%profit margin. The company said that “innovative products” and an updated portfolio together withcost controls maintained the profit margins.
The Parcels/Express division generated good growth and increased revenues by 7.5% to €2.5billion (+6.5% underlying). It had operating profits of €206 million, and the operating profitmargin increased slightly by 0.9 percentage points to 8.2% “thanks notably to good control ofoperating costs”, the company stated. Growth was mostly driven by GeoPost which increased volumesby 6.5% and revenues by 8.5% to €1,771 million. French B2C parcels unit Coliposte increasedrevenues by 5.3% to €734 million.
The post office network increase had flat sales of €1,260 million for mail and parcel productsand services.
La Banque Postale increased its revenues by 1.2% to €2,671 million but its profits dropped to€245 million mostly due to a €158 million provision for the lower value of Greekinvestments.
Looking ahead, the company said that after a first half-year “in line with the objectives” thesecond half of 2011 was marked by uncertainty due to the slower European economy and movements infinancial markets. Nevertheless, it confirmed the target of an operating profit margin of at least3% in 2011.
