France’s La Poste increased operating profits by more than 25 per cent in the first half of 2012due to lower charges but its underlying profits as well as revenues were flat in a challenging
business environment.The postal group yesterday announced half-year EBIT of €632 million, up 25.5 per cent.However, this was largely due to lower provisions for bank loans to Greece, at just €30 million forthe six months compared to €158 million in the first half of last year. Excluding this effect, thegroup’s operating profit was stable at €662 million. Net profit increased by 15.8 per cent to €437million.
The group’s turnover increased by 0.9 per cent to €10.9 billion, which was just 0.1 per centhigher on an underlying basis. The reported operating profit margin improved to 5.8 per cent from4.7 per cent.
CEO Jean-Paul Bailly welcomed the “solid” results which had been achieved in an “unfavourable” economic context and thanks to several positive factors, including the impact of thepresidential election on mail volumes, the good performance of the international business, andintroduction of new offers.
For 2012 as a whole, La Poste confirmed its target of a 3-4 per cent operating profit marginagainst the background of the slowing European economy and the financial crisis.
The Mail division saw its half-year operating profits drop by 3.8 per cent to €470 million.Revenues declined 1.9 per cent to €5.8 billion with volumes down by 5.8 per cent, and the operatingmargin declined fractionally to 8.1 per cent.
The Parcels/Express division improved its operating profit by 1.7 per cent to €210 millionwhile turnover grew by 7.6 per cent to €2.7 billion despite pressure on prices in France andabroad. The operating margin fell back from 8.2 per cent last year to 7.8 per cent.
GeoPost, the international express parcels subsidiary, increased its revenues by 9.6 percent to €1.94 billion. The company acquired further shares in Spanish firm Seur which it nowcontrols exclusively and which is fully consolidated into the results. The underlying revenueincrease, excluding full consolidation of Seur, South Africa’s Laser and German firm Iloxx, was 5.5per cent, La Poste said in its interim report.
In the first half-year, GeoPost volumes increased 6.3 per cent. All markets grew apart fromSpain and Portugal, with the strongest growth in the UK, Eastern Europe and Russia. In Germany, DPDincreased revenues by 3 per cent “in a highly competitive environment which caused price pressure”,La Poste commented.
In the UK, the group increased sales by 16 per cent and strengthened its market position inparticular with the launch of its Predict B2C product. In France, Chronopost and Exapaq increasedsales by 3 per cent and 5 per cent respectively. In Spain, Seur revenues declined in the half-yeardue to competitive price pressure and lower weights.
The separate French domestic parcels business ColiPoste increased revenues by 2.6 per centto €753 million and volumes by 2 per cent, driven by its B2C product Colissimo, which increasedvolumes by 6.4 per cent, and a positive pricing/product mix as well as stronger growth in Q2.
The financial services division (La Banque Postale) had stable revenue of €2.67 billion andincreased its operating profits by 42 per cent to €348 million, mostly due to the lower provisionsfor its Greek loans.
