Austrian Post Falls Behind Last Year’s Quarter in Q1/22

(Wien) In the first quarter of 2022, Austrian Post reported, as previously communicated, a revenue and earnings development below the previous year’s level. The revenue for the first three months of 2022 amounted to 601.4 million EUR, which is 7.1% lower than in the first quarter of 2021. The majority of this decline is attributed to the sharply fallen exchange rate of the Turkish lira. The revenue decline excluding the Turkish parcel business (subsidiary Aras Kargo) was 2.4%. The revenue of the Mail & Advertising division decreased by 3.9% to 298.9 million EUR, partly due to the structural decline in addressed letter volumes and partly due to the absence of positive COVID-19 effects in the form of special mailings from the previous year. The revenue decline of the Parcel & Logistics division by 12.5% to 283.1 million EUR was particularly due to the exchange rate loss of the Turkish lira. Excluding the Turkey business, the revenue decline of the division was 3.4%. The Branch & Bank division performed positively with a revenue increase of 49.3% to 26.4 million EUR.

The negative revenue development, inflationary tendencies, and the pressure on the Turkish lira also affected the results. EBITDA for the first quarter of 2022 decreased from 99.0 million EUR to 81.2 million EUR (–17.9%), and the earnings before interest and taxes (EBIT) decreased from 59.8 million EUR to 39.6 million EUR (–33.7%). The Mail & Advertising division recorded an EBIT of 41.1 million EUR after 45.5 million EUR in the previous year, the Parcel & Logistics division generated an EBIT of 17.4 million EUR after 35.8 million EUR in the previous period, predominantly influenced by the exchange rate development of the Turkish lira, and the Branch & Bank division achieved an EBIT of minus 10.7 million EUR in the current reporting period after minus 18.4 million EUR in the previous year (+41.8%).

Impact of the Ukraine War on Business Model

The military actions in Ukraine indirectly affect the business model of Austrian Post – through the solidifying inflation, based on increases in energy and raw materials, as well as through interrupted supply and value chains. The inflationary pressure leads to increases in operational personnel and energy costs and further negatively impacts consumer behavior. “Through comprehensive countermeasures, Austrian Post is striving to make the provision of mail and parcel delivery as cost-efficient as possible. Moderate inflation adjustments will be made on the revenue side,” said General Director DI Dr. Georg Pölzl.

Recovery Targeted in the Second Half of 2022

In the development of the year 2022, it is expected that a deviation from the previous year will particularly affect the first half of the year. The positive special effects from the previous year caused by lockdowns represent high comparative values. A recovery is targeted in the second half of 2022. Despite the difficult environment, Austrian Post aims for a stable revenue in 2022 compared to the previous year (revenue 2021: 2.5 billion EUR). The prerequisite for this forecast remains a largely economic as well as energy and currency stability in the markets. The earnings forecast for 2022 is challenging due to the current environment. It is feared that inflationary tendencies may now not only occur in the short term but also in the long term. The group result (EBIT) for 2022 is expected to be between the levels of the last two years (EBIT 2021: 205 million EUR, EBIT 2020: 161 million EUR). The company’s ambition remains to come as close as possible to the level of 2021.

The planned investment program of Austrian Post will fundamentally maintain its focus on capacity expansion and sustainability. Individual investments will be reviewed to ensure compliance with all profitability targets. “We assure our customers that even in these challenging times, we can continue to ensure our highest possible performance and our excellent service,” said Georg Pölzl. “In this context, the transformation of logistics into climate-neutral delivery plays a significant role in all investment decisions,” Georg Pölzl concluded.

Key Figures at a Glance:

Revenue

• Revenue down 7.1% to 601.4 million EUR below previous year’s level (–2.4% excl. Turkey parcel business)
  • Mail & Advertising –3.9% to 298.9 million EUR
  • Parcel & Logistics –12.5% to 283.1 million EUR (–3.4% excl. Turkey parcel business)
  • Branch & Bank +49.3% to 26.4 million EUR

Results

• EBITDA –17.9% to 81.2 million EUR
• EBIT –33.7% to 39.6 million EUR
• Earnings per share from 0.71 EUR to 0.46 EUR

Cash Flow and Balance Sheet

• Operational free cash flow of 72.1 million EUR
• Total assets including bank99 at 4.9 billion EUR
• Stable equity position of 693.5 million EUR

Outlook 2022

• Revenue level of the previous year targeted again (revenue 2021: 2.5 billion EUR)
• H1 behind high comparative values of the previous year, recovery targeted in H2
• EBIT 2022 expected between 2021 (205 million EUR) and 2020 (161 million EUR)

Photo: © Austrian Post AG