Earnings Release • Mar 13, 2018
Earnings Release
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Koen Van Gerven, CEO, commented: "In 2017 we achieved key milestones to carry forward our sustainable profitable growth. First the recent strategic acquisition of Radial allows us to expand our business in the fast growing e-commerce logistics business. Second the successful launch of the biggest sorting center in the Benelux is a key enabler in delivering operational excellence for our customers. And finally the new postal law voted recently by the Belgian parliament secures a stable and transparent regulatory framework in Belgium.
The fourth quarter benefitted again from an excellent domestic parcels growth driven by strong online end of year sales. However our operational results have been impacted by an increased e-substitution in Transactional Mail, costs related to the set-up of activities at our new sorting facility in Brussels, higher opex to manage year-end peak and a restructuring provision for Ubiway. The major financial objective of 2017 was to compensate the absence of price increase on the small user basket with an estimated impact of EUR 20 million. Our operational results for the full year 2017 are above last year driven by the excellent parcels performance and by the contribution of the acquisitions, including Radial. Next year will be another challenging year but we remain confident in our strategy which will continue to deliver as we did over the last years."
The outlook for 2018 includes the acquisitions of Radial, Bubble Post, Leen Menken Foodservice Logistics, IMEX Global Solutions and M.A.I.L..
We expect revenues to grow driven by:
On the cost side, we expect higher costs driven by:
partly compensated by:
This results in our ambition to achieve a recurring EBITDA in the range of EUR 560 to 600m and dividend for 2018 at least at the same level as 2017.
• Gross capex is expected to be around EUR 140.0m explained by Recurring & Vision 2020 investments and business development investments for new subsidiaries (Radial, Ubiway and Dynagroup)
| Reported 4Q16 |
4Q17 | Normalized 4Q16 |
4Q17 | % Δ | |
|---|---|---|---|---|---|
| Total operating income (revenues) | 690.7 | 955.1 | 690.7 | 955.1 | 38.3% |
| Operating expenses | 549.2 | 803.7 | 549.2 | 803.7 | 46.3% |
| EBITDA | 141.5 | 151.4 | 141.5 | 151.4 | 7.0% |
| Margin (%) | 20.5% | 15.9% | 20.5% | 15.9% | |
| EBIT | 118.0 | 115.5 | 118.0 | 124.2 | 5.3% |
| Margin (%) | 17.1% | 12.1% | 17.1% | 13.0% | |
| Profit before tax | 121.0 | 106.9 | 121.0 | 115.7 | -4.4% |
| Income tax expense | 19.3 | 39.8 | 41.5 | 42.2 | |
| Net profit | 101.7 | 67.1 | 79.5 | 73.5 | -7.6% |
| FCF | 34.5 | (576.6) | 34.5 | (576.6) | |
| bpost S.A./N.V. net profit (BGAAP) |
86.8 | 68.2 | 64.7 | 68.2 | 5.5% |
| Net Debt/ (Net cash), at 31 Dec. |
(492.7) | 292.4 | (492.7) | 292.4 | |
| Full year (million EUR) |
| Reported | Normalized | ||||
|---|---|---|---|---|---|
| FY16 | FY17 | FY16 | FY17 | % Δ | |
| Total operating income (revenues) | 2,425.2 | 3,023.8 | 2,425.2 | 3,023.8 | 24.7% |
| Operating expenses | 1,838.4 | 2,425.9 | 1,838.4 | 2,425.9 | 32.0% |
| EBITDA | 586.9 | 598.0 | 586.9 | 598.0 | 1.9% |
| Margin (%) | 24.2% | 19.8% | 24.2% | 19.8% | |
| EBIT | 496.5 | 492.9 | 496.5 | 501.6 | 1.0% |
| Margin (%) | 20.5% | 16.3% | 20.5% | 16.6% | |
| Profit before tax | 489.5 | 488.7 | 489.5 | 497.5 | 1.6% |
| Income tax expense | 143.2 | 165.8 | 165.4 | 168.2 | |
| Net profit | 346.2 | 322.9 | 324.1 | 329.3 | 1.6% |
| FCF | 193.9 | (485.8) | 193.9 | (485.8) | |
| bpost S.A./N.V. net profit (BGAAP) |
308.7 | 291.0 | 286.5 | 291.0 | 1.6% |
| Net Debt/ (Net cash), at 31 Dec. |
(492.7) | 292.4 | (492.7) | 292.4 |
For more information: Baudouin de Hepcée T. +32 2 276 2228 (media and IR) corporate.bpost.be/investors Saskia Dheedene T. +32 2 276 7643 (IR only) [email protected]
1 Normalized and Q4 figures are not audited.
Total comparable operating income increased by EUR 279.8m to EUR 955.1m. Excluding the impact of Radial (EUR 203.1m), the increase amounted to EUR 76.7m. This increase was driven by Parcels (EUR +43.7m, explained by Parcels growth and the integration of DynaGroup), along with the integration of Ubiway and the reversal on earn-out of DynaGroup, which were the main contributors to the increase of Additional sources of revenues (EUR +43.6m) and the total operating income attributable to Corporate (EUR +10.8m). All these effects were partially offset by the decrease of Domestic Mail as the price increase in Domestic Mail (EUR +3.0m) was outpaced by the volume decrease of Domestic Mail (EUR -23.6m) and a working day impact (EUR -0.7m).
Excluding Radial, reported comparable costs increased by EUR 83.8m, mainly due to the consolidation of new subsidiaries. Normalized EBITDA and EBIT increased respectively by EUR 9.9m and EUR 6.2m helped by the reversal on earn-out DynaGroup and the contribution of Radial.
Net financial result decreased by EUR 11.8m mainly due to non-cash financial results related to IAS 19 employee benefits.
Normalized income tax expense decreased compared to last year, with the effective tax rate being 36.5%. During the last quarter of 2016 Deltamedia NV/SA had been liquidated, triggering a positive impact of EUR 22.2m. The loss on the participation incurred by bpost NV/SA was tax deductible upon liquidation to the extent it represented previously fiscally paid-up capital in Deltamedia NV/SA and had been excluded from the normalized results due to its non-recurring nature.
Normalized IFRS group net profit reached EUR 73.5m. Belgian GAAP net profit of the parent company amounted to EUR 68.2m and was higher compared to last year which normalized for the impact of the liquidation of Deltamedia amounted to EUR 64.7m.
Total comparable operating income increased by EUR 614.0m to EUR 3,023.8m. Excluding the impact of Radial (EUR 203.1m), the increase amounted to EUR 410.9m. This increase was driven by Parcels (EUR +205.3m, explained by Parcels growth and the integration of DynaGroup), along with the integration of Ubiway and the reversal on earn-out of DynaGroup, which were the main contributors to the increase of Additional sources of revenues (EUR +255.2m) and the total operating income attributable to Corporate (EUR +11.5m). All these effects were partially offset by the decrease of Domestic Mail as the price increase in Domestic Mail (EUR +12.5m) were outpaced by the volume decrease of Domestic Mail (EUR -71.3m) and the impact of less working days (EUR - 2.3m).
Excluding Radial, reported comparable costs increased by EUR 416.7m, mainly due to the consolidation of new subsidiaries. Overall normalized EBITDA and EBIT increased respectively EUR 11.1m and EUR 5.1m. Excluding one-offs (reversal on earn-out DynaGroup and non-cash profit related to the termination of transport benefit) and the contribution of Radial, EBITDA is slightly below guidance.
Net financial result increased by EUR 3.2m mainly due to non-cash financial results related to IAS 19 employee benefits.
Normalized income tax expense slightly decreased compared to last year, with the effective tax rate being 33.8%. During the last quarter of 2016 Deltamedia NV/SA had been liquidated, triggering a positive impact of EUR 22.2m. The loss on the participation incurred by bpost NV/SA was tax deductible upon liquidation to the extent it represented previously fiscally paid-up capital in Deltamedia NV/SA and had been excluded from the normalized results due to its non-recurring nature.
Normalized IFRS group net profit reached EUR 329.3m or EUR 5.2m higher compared to last year. Belgian GAAP net profit of the parent company amounted to EUR 291.0m and was higher compared to last year, which normalized for the impact of the liquidation of Deltamedia amounted to EUR 286.5m.
Following last years' acquisitions resulting in an expansion of products and services, the revenue portfolio of the bpost Group has been updated to better reflect the different activities. As of January 1, 2017 parcels solutions and fulfillment services have been transferred to the Logistic Solutions portfolio (previously called Special Logistics), whereas the Kariboo activities of Ubiway and the customs activities have been transferred to Domestic Parcels. These portfolios were previously registered under Additional sources of revenues, more specifically under Value added services and Other. The Asian packet products have been aligned and are now all reported within the International Parcels portfolio instead of International Mail. Finally the press and convenience distribution activities of Ubiway have been transferred from Retail & Other to a newly created product category Distribution.
Furthermore in 2017 the purchase price allocation for Ubiway has been finalized and the accounting policies of Ubiway have been aligned with the policies of bpost Group. A part of the revenues of the 4th quarter of 2016 which had been booked under the principal model has been restated to the agent model in order to be in line with IAS 18 "Revenue". As a consequence certain sales and cost of sales are now being presented on a net basis, this led to a decrease of revenues and materials costs of EUR 15.4m but did not have an impact on the EBITDA, EBIT or net result.
Taking into account these changes, the 2016 figures at the level of the product portfolios have been made comparable to reflect these changes. The comparable figures are shown under the heading "comparable". The variances mentioned hereafter compare the 2017 figures with the 2016 comparable figures.
| In million EUR | 4Q16 | Reclassi fication |
4Q16 Com parable |
∆ | 4Q17 | % ∆ comp |
Under lying vol. % ∆ |
|---|---|---|---|---|---|---|---|
| Domestic mail | 381.2 | 0.0 | 381.2 | (21.4) | 359.8 | -5.6% | -6.4% |
| Transactional mail | 235.1 | 235.1 | (20.3) | 214.8 | -8.6% | -8.9% | |
| Advertising mail | 66.2 | 66.2 | 1.1 | 67.3 | 1.7% | 0.5% | |
| Press | 79.9 | 79.9 | (2.2) | 77.7 | -2.8% | -2.6% | |
| Parcels | 118.3 | 4.0 | 122.3 | 245.6 | 367.9 | 200.7% | |
| Domestic parcels | 52.0 | 1.1 | 53.1 | 11.7 | 64.8 | 22.0% | +30.8% |
| International parcels | 64.4 | 1.9 | 66.3 | (3.3) | 63.0 | -5.0% | |
| Logistic solutions | 2.0 | 1.0 | 3.0 | 237.2 | 240.2 | - | |
| Additional sources of revenues |
189.2 | (19.4) | 169.8 | 44.8 | 214.6 | 26.4% | |
| International mail | 45.5 | (1.9) | 43.6 | (0.6) | 43.0 | -1.4% | |
| Value added services |
25.5 | (0.7) | 24.8 | 0.7 | 25.4 | 2.6% | |
| Banking and financial products |
49.9 | 0.0 | 49.9 | (6.5) | 43.5 | -13.0% | |
| Distribution | 10.7 | 10.7 | 15.1 | 25.8 | 141.0% | ||
| Retail & other | 68.3 | (27.6) | 40.7 | 36.2 | 76.9 | 88.8% | |
| Corporate | 2.0 | 0.0 | 2.0 | 10.8 | 12.8 | 535.7% | |
| TOTAL | 690.7 | (15.4) | 675.3 | 279.8 | 955.1 | 41.4% |
Total comparable operating income increased by EUR 279.8m, or 41.4%, from EUR 675.3m in the fourth quarter of 2017 to EUR 955.1m in the same period of 2016.
Revenues from Domestic Mail decreased by EUR 21.4m to EUR 359.8m as reported and underlying volume decline (corrected for 1 working day less on franking machines and 1 more on stamps) amounted to -6.6% and -6.4% respectively. Transactional mail with a reported and underlying volume decline of respectively -9.2% and -8.9% was impacted by an accelerated e-substitution, mainly in banking and telco sectors combined with growing acceptance of electronic documents by end users. Advertising mail realized a reported and underlying volume increase of +0.5% for the quarter. This increase was driven by the focus on growth segments and indirect channels. Press volume noted a slightly better reported and underlying trend of -2.6% compared to the previous quarter (-4.3%) and full year 2017 (-3.7%). This was mainly driven by periodicals.
Total mail volume decline impacted revenues by EUR -23.6m, along with 1 working day less on franking machines and 1 more on stamps (EUR -0.7m) and was partially compensated by the net improvement in price and mix amounting to EUR 3.0m.
Parcels increased by EUR 245.6m to EUR 367.9m or excluding the impact of Radial (EUR 201.9m) the increase amounted to EUR 43.7m. The continued growth in Domestic Parcels (EUR 11.7m) and Logistic Solutions (EUR 35.3 m) following the consolidation of DynaGroup was slightly offset by the lower revenues for International parcels (EUR -3.3m). Domestic Parcels noted again a strong quarterly volume growth of +30.8% driven by strong e-commerce growth and the continued growth in C2C parcels (online offering). Price increases were fully offset by the evolution of the client and product mix, resulting in a negative price mix effect of -6.9% which continued to impact revenue evolution. Within International Parcels the growth in flows from Asia and Europe was offset by lower flows from the US due to some phasing elements and the impact of the weaker USD.
Total operating income from Additional Sources of Revenues increased by EUR 44.8m to EUR 214.6m or excluding the impact of Radial (EUR 1.2m) the increase amounted to EUR 43.6m. The decrease of Banking and financial products (EUR -6.5m) due to the lower revenues from financial transactions managed on behalf of the Belgian State and the lower commission of bpost bank was more than compensated by the increase of Distribution (EUR 12.9m) and Retail & Other (EUR 37.1m). This increase in turn was mainly due to the integration of Ubiway and the reversal on DynaGroup earn-out.
Revenues from Corporate increased by EUR 10.8m.
| In million EUR | FY16 | Reclassi -fication |
FY16 Comparable |
∆ | FY17 | % ∆ comp |
underlying vol. % ∆ |
|---|---|---|---|---|---|---|---|
| Domestic mail | 1,414.4 | 0.0 | 1,414.4 | (61.0) | 1,353.4 | -4.3% | -5.8% |
| Transactional mail | 873.3 | 0.0 | 873.3 | (65.4) | 807.9 | -7.5% | -8.1% |
| Advertising mail | 247.8 | 0.0 | 247.8 | 5.0 | 252.9 | 2.0% | 1.5% |
| Press | 293.2 | 0.0 | 293.2 | (0.6) | 292.6 | -0.2% | -3.7% |
| Parcels | 379.4 | 9.6 | 388.9 | 407.2 | 796.1 | 104.7% | |
| Domestic parcels | 181.8 | 3.7 | 185.5 | 38.7 | 224.2 | 20.9% | +28.2% |
| International parcels |
189.5 | 2.8 | 192.3 | 30.3 | 222.6 | 15.8% | |
| Logistic solutions | 8.0 | 3.1 | 11.1 | 338.1 | 349.2 | - | |
| Additional sources of revenues |
600.1 | (25.0) | 575.1 | 256.4 | 831.5 | 44.6% | |
| International mail | 162.0 | (2.8) | 159.2 | 1.2 | 160.4 | 0.8% | |
| Value added services |
103.1 | (2.0) | 101.1 | 0.4 | 101.5 | 0.4% | |
| Banking and financial products |
192.4 | 0.0 | 192.4 | (9.8) | 182.6 | -5.1% | |
| Distribution | 10.7 | 10.7 | 87.3 | 98.1 | - | ||
| Retail & Other | 142.6 | (31.0) | 111.7 | 177.2 | 288.9 | - | |
| Corporate | 31.4 | 0.0 | 31.4 | 11.5 | 42.9 | 36.5% | |
| TOTAL | 2,425.2 | (15.4) | 2,409.8 | 614.0 | 3,023.8 | 25.5% |
Total comparable operating income increased by EUR 614.0m, or 25.5%, from EUR 2,409.8m in 2016 to EUR 3,023.8m in 2017.
Domestic Mail revenues amounted to EUR 1,353.4m in 2017, an organic decline of EUR 61.0m versus last year, due to a reported volume evolution of -5.9% and underlying volume evolution of - 5.8%, partly compensated by a price/mix improvement.
Parcels revenues grew by EUR 407.2m to reach EUR 796.1m. Excluding the integration of Radial (EUR 201.9m), the increase amounted to EUR 205.3m mainly driven by the excellent volume growth of +28.2% in Domestic Parcels versus +17.1% in 2016, the increase in International Parcels and the integration of DynaGroup in Logistic Solutions.
Additional Sources of Revenues increased by EUR 256.4m (excluding Radial EUR 255.2m) to EUR 831.5m, mainly due to the integration of Ubiway, the reversal on DynaGroup earn-out and the increase of the International Mail (EUR 1.2m), partially offset by the decrease of the Banking and financial activities (EUR –9.8m).
Corporate revenues increased by EUR 11.5m to EUR 42.9m.
| 4Q16 | 4Q16 | 4Q17 | % ∆ | |
|---|---|---|---|---|
| In million EUR | Comparable | |||
| Payroll & interim costs | 305.0 | 305.0 | 401.0 | 31.5% |
| FTE | 25,388 | 25,388 | 29,041 | |
| SG&A (excl. interim and transport costs) | 128.5 | 128.5 | 178.8 | 39.1% |
| Transport costs | 68.9 | 68.9 | 157.8 | 129.1% |
| Other costs | 46.8 | 31.4 | 66.1 | 110.8% |
| TOTAL OPERATING EXPENSES | 549.2 | 533.8 | 803.7 | 50.6% |
In the fourth quarter of 2017 total operating expenses stood at EUR 803.7m and increased by EUR 269.9m or 50.6% on a comparable basis. Excluding the integration of new subsidiaries (EUR 257.7m), the operating expenses increased by EUR 12.2m as the increase of transport costs (EUR 9.1m) and payroll and interim costs (EUR 9.7m) was only partly compensated by the decrease of other costs (EUR 5.4m) and SG&A excluding interim and transport costs (EUR 1.3m).
Payroll and interims costs amounted to EUR 401.0m and showed a net increase of EUR 96.0m compared to the same period of 2016 and was mainly driven by the impact of the new subsidiaries (EUR 86.2m).
The reported average year-on-year staff showed an increase of 3,654 FTE and interims, generating extra costs of EUR 93.5m, explained by the integration of FTE and interims of the new subsidiaries.
A positive mix effect reduced costs by EUR 3.0m and was mainly driven by the recruitment of auxiliary postmen.
The indexation of salaries combined with the impacts of the CLA and the merit increases led to a negative price impact EUR 5.5m.
Not taking into account the impact of the integration of new subsidiaries, SG&A excluding transport costs and interims decreased slightly by EUR 1.3m. The decrease was mainly driven by the decrease of third party remuneration fees and maintenance and repairs, partly compensated by the increase of rent and rental costs (mainly new Brussels sorting centre).
Transport costs amounted to EUR 157.8m, EUR 88.9m higher compared to previous year (or 129.1%) due to scope change (EUR 79.8m) and the evolution of international activities.
The increase in other costs (EUR 34.7m) is mainly explained by the integration of new subsidiaries (EUR 40.1m), partly compensated by a decrease in other operating charges.
| FY16 | FY16 | FY17 | % ∆ | |
|---|---|---|---|---|
| In million EUR | Comparable | |||
| Payroll & interim costs | 1,165.8 | 1,165.8 | 1,313.7 | 12.7% |
| FTE | 24,850 | 24,850 | 26,906 | |
| SG&A (excl. interim and transport costs) | 393.2 | 393.2 | 491.5 | 25.0% |
| Transport costs | 217.2 | 217.2 | 374.2 | 72.3% |
| Other costs | 62.1 | 46.7 | 246.4 | 427.6% |
| TOTAL OPERATING EXPENSES | 1,838.4 | 1,823.0 | 2,425.9 | 33.1% |
Total operating expenses stood at EUR 2,425.9m and increased by 33.1% or EUR 602.9m on a comparable basis. Excluding the integration of new subsidiaries (EUR 579.0m), the operating expenses increased by EUR 23.9m as the increase of transport costs (EUR 27.8m), other costs (EUR 0.8m) was only partially compensated by the decrease of the payroll and interim costs (EUR 4.2m) and SG&A excluding interim and transport costs (EUR -0.6m).
Payroll and interims costs increased by EUR 147.9m mainly driven by the impact of the new subsidiaries (EUR 152.1m). The reported average year-on-year staff showed an increase of 2,057 FTE and interims, generating extra costs of EUR 155.8m, explained by the integration of FTE and interims of the new subsidiaries. The price effects and others have a negative impact of EUR 5.2m, mainly explained by indexation of salaries, impacts of the CLA, merit increases, partly compensated by tax shift and employee benefits (non-cash profit related to the termination of transport benefit). Those negative impacts were partially compensated by a positive mix effect (EUR 13.1m).
Not taking into account the impact of the integration of new subsidiaries, SG&A excluding transport costs and interims decreased by EUR 0.6m. The variation is mainly due to the decrease of third party remuneration fees, offset by the increase of rental costs and energy delivery.
Transport costs amounted to EUR 217.2m, EUR 157.0m higher compared to previous year, mainly due to scope change (EUR 129.2m) and the evolution of international activities.
Other costs increased by EUR 199.7m but only slightly increased by EUR 0.8m when excluding the impact of the integration of new subsidiaries.
Net cash outflow decreased compared to the same period last year by EUR 76.1m to EUR 110.0m.
Free cash flow amounted to EUR -576.6m in the fourth quarter of 2017 (EUR +34.5m in 2016).
Cash flow from operating activities decreased by EUR 76.9m compared to the same period last year to EUR 46.7m mainly due to a deterioration in working capital (EUR -77.2m) as a consequence of peak sales season of Radial combined with lower outstanding trade payables.
Investing activities generated a cash outflow of EUR 623.2m in the fourth quarter of 2017 compared to an outflow of EUR 89.0m for the same period last year as investment securities (EUR +12.0m) and higher proceeds from the sale of property, plant and equipment (EUR +3.5m) were more than counterbalanced by higher cash outflows related to capital expenditures (EUR -12.4m) and by the cash outflows related acquisitions of subsidiaries. The increase of the latter was due to the acquisition of Radial (EUR -581.5m) in the fourth quarter of 2017 partially offset by the outflow related to acquisition of Ubiway (EUR +39.9m), the first earn-out payment for Apple Express Canada (EUR +3.7m) and the investment in the Citie digital platform (EUR +0.8m) in the same period last year.
The cash flow relating to financing activities amounted to EUR 466.6m, following the bridge loan entered into for the purchase of Radial counterbalanced by the payment of the interim dividend.
In 2017, bpost consumed EUR 68.9m of net cash. This is a decrease of EUR 7.3m compared to the net cash outflow of EUR 76.2m in 2016.
Cash flow from operating activities resulted in a cash inflow of EUR 266.1m, EUR 86.5m less than in 2016. Cash generation from operating activities had been impacted by the net impact of Alpha pay-outs (EUR +18.7m), the payment of terminal dues in 2016 (EUR +16.8m), which was mainly phasing, and deterioration of working capital by EUR 121.1m mainly driven by peak sales season of Radial combined with lower outstanding trade payables.
Investing activities generated a cash outflow of EUR 751.9m in 2017 compared to an outflow of EUR 158.7m last year, resulting from lower proceeds from sale of property, plant and equipment (EUR -3.2m) and higher capital expenditures (EUR -36.3m), which was partially offset by investment securities (EUR +24.0m). Cash outflows related to the acquisition of new subsidiaries and activities increased by EUR 577.7m and is composed as follows : Radial (EUR -581.5m), DynaGroup (EUR - 50.2m), LGI (EUR -11.0m), Ubiway (EUR +43.0m), Apple Express (EUR +12.3m), FDM (EUR +8.6m), other acquisitions (EUR +1.0m).
The net cash flow relating to financing activities amounted to EUR 416.8m, an increase by EUR 687.0m compared to last year given the bridge loan entered into for the purchase of Radial and the dividend to minority interests paid in 2016 which were partially counterbalanced by the higher final dividend in 2017.
Cubee is the result of last year's joining of forces of bpost and the Dutch company de Buren. It is an independent, open network of parcel lockers for retailers, online customers and couriers.
New Brussels X, the brand new bpost sorting center in Neder-Over-Heembeek, was officially opened by Deputy Prime Minister and Minister of Development Cooperation, Digital Agenda, Telecom and Post Alexander De Croo and Mayor of the City of Brussels Philippe Close. With 80,000m², the sorting center is the biggest in the Benelux and the second biggest in Europe. As well as letters for Brussels and Flemish Brabant, New Brussels X will handle all parcels for the whole country.
The eye-catcher at New Brussels X is the brand-new high-tech parcel sorting machine (PSM), which instantly doubles sorting capacity at bpost to 300,000 parcels per day. New Brussels X is also able to handle 2.4 million letters per day.
The acquisition of Radial, a leading provider of integrated e-commerce logistics, perfectly fits within bpost's growth strategy. It allows bpost to scale its existing US presence and expand its product offering into value-added activities that cover the entire value chain in e-commerce logistics.
In order to prepare the company for the future, the Board of Directors decided to reinforce the Group Executive Committee of bpost as of January 15, 2018. Henri de Romrée succeeded Koen Beeckmans as Chief Financial Officer and member of the Group Executive Committee. Nico Cools, heading the ICT division, became CIO and member of the Group Executive Committee. Dirk Tirez, Chief Legal & Regulatory Officer and Company Secretary, also became member of the Group Executive Committee.
On January 11, 2018 bpost acquired the Dutch company Leen Menken Foodservices Logistics B.V.. Leen Menken Foodservice Logistics B.V. is a logistic operator for the transport of refrigerated and frozen products for e-commerce. Furthermore Landmark Global acquired 100% of the shares of IMEX Global Solutions, Inc. and M.A.I.L., Inc. Both companies are active in business mail and are being acquired by Landmark Global's Mail Division MSI. IMEX Global Solutions, Inc. is a 3rd party logistics company in the US, active in cross-border publication and mail delivery. M.A.I.L., Inc. is active in the field of business mail/catalogue distribution for re/e-tailers and mail-room services as well as parcel distribution.
Finally, bpost acquired the remaining shares in Parcify NV/SA on January 1, 2018 to reach a total of 100% shares.
14.03.18 (10.00 CET) Analyst Conference Call 03.05.18 (10.00 CET) Analyst Conference Call 15.05.18 Ex-dividend date 16.05.18 Record date 09.08.18 (10.00 CET) Analyst Conference Call 08.11.18 (10.00 CET) Analyst Conference Call
01.04.18 Start of quiet period ahead of Q1/2018 results 02.05.18 (17.45 CET) Announcement Q1/2018 results 09.05.18 Ordinary General Meeting of Shareholders 17.05.18 Payment date of the dividend 09.07.18 Start of quiet period ahead of Q2/2018 results 08.08.18 (17.45 CET) Announcement Q2/2018 and half-year results 08.10.18 Start of quiet period ahead of Q3/2018 results 07.11.18 (17.45 CET) Announcement Q3/2018 results 03.12.18 (17.45 CET) Interim dividend 2018 announcement 06.12.18 Ex-dividend date (interim dividend) 07.12.18 Record date (interim dividend) 10.12.18 Payment date of the interim dividend
The joint statutory auditors, Ernst & Young Bedrijfsrevisoren/Réviseurs d'Entreprises represented by Mr. Eric Golenvaux and PVMD Bedrijfsrevisoren/Réviseurs d'Enterprises represented by Ms. Caroline Baert, have issued an unqualified audit opinion on the consolidated financial statements and confirmed that the financial information included in this press release, do not contain materially differences with the consolidated financial statements.
| Year-to-date | 4th quarter | |||
|---|---|---|---|---|
| In million EUR | 2016 | 2017 | 2016 | 2017 |
| Turnover | 2,399.4 | 2,972.2 | 682.8 | 931.7 |
| Other operating income | 25.8 | 51.6 | 7.9 | 23.5 |
| TOTAL OPERATING INCOME | 2,425.2 | 3,023.8 | 690.7 | 955.1 |
| Material costs | (60.4) | (240.7) | (39.5) | (61.1) |
| Services and other goods | (665.2) | (972.8) | (216.6) | (395.0) |
| Payroll costs | (1,111.1) | (1,206.7) | (285.8) | (342.6) |
| Other operating expenses | (1.7) | (5.6) | (7.3) | (5.0) |
| Depreciation, amortization | (90.3) | (105.1) | (23.5) | (35.9) |
| TOTAL OPERATING EXPENSES | (1,928.7) | (2,530.9) | (572.7) | (839.7) |
| PROFIT FROM OPERATING ACTIVITIES (EBIT) | 496.5 | 492.9 | 118.0 | 115.5 |
| Financial income | 10.7 | 5.8 | 5.5 | 2.5 |
| Financial costs | (27.6) | (19.5) | (3.9) | (12.7) |
| Share of profit of associates | 9.9 | 9.6 | 1.4 | 1.6 |
| PROFIT BEFORE TAX | 489.5 | 488.7 | 121.0 | 106.9 |
| Income tax expense | (143.2) | (165.8) | (19.3) | (39.8) |
| PROFIT OF THE PERIOD | 346.2 | 322.9 | 101.7 | 67.1 |
| Attributable to: | ||||
| Owners of the Parent | 343.8 | 324.9 | 100.3 | 68.6 |
| Non-controlling interests | 2.5 | (2.0) | 1.4 | (1.4) |
2 A full set of consolidated financial statements and notes on full year 2017 is available in the 2017 Annual Report at corporate.bpost.be/investors.
| Year-to-date | 4th quarter | |||
|---|---|---|---|---|
| In EUR | 2016 | 2017 | 2016 | 2017 |
| ►basic, profit for the year attributable to ordinary equity | ||||
| holders of the parent | 1.72 | 1.62 | 0.50 | 0.34 |
| ►diluted, profit for the year attributable to ordinary equity | ||||
| holders of the parent | 1.72 | 1.62 | 0.50 | 0.34 |
In accordance with IAS 33, diluted earnings per share amounts have to be calculated by dividing the net profit attributable to ordinary equity holders of the parent (after adjusting for the effects of all dilutive potential ordinary shares) by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.
As far as bpost is concerned, no effects of dilution affect the net profit attributable to ordinary equity holders and the weighted average number of ordinary shares.
| As of 31 December | As of 31 December | |
|---|---|---|
| In million EUR | 2016 | 2017 |
| PROFIT FOR THE YEAR | 346.2 | 322.9 |
| OTHER COMPREHENSIVE INCOME | ||
| Other comprehensive income to be reclassified to profit or loss in subsequent periods (net of tax): |
||
| Net gain/(loss) on hedge of a net investment | 0.0 | 2.5 |
| Exchange differences on translation of foreign operations | 1.9 | (16.5) |
| NET OTHER COMPREHENSIVE INCOME/(LOSS) TO RECLASSIFIED TO PROFIT OR LOSS IN SUBSEQUENT PERIODS |
BE 1.9 |
(14.0) |
| Other comprehensive income not to be reclassified to profit or loss in subsequent periods (net of tax): |
||
| Fair value for financial assets available for sale by associates | (12.0) | (42.1) |
| (Loss)gain on available for sale financial assets | (18.2) | (75.5) |
| Income tax effect | 6.2 | 33.5 |
| Fair value of actuarial results on defined benefit plans | (4.8) | 3.1 |
| Actuarial gains/(losses) on defined benefit plans | (5.8) | 4.3 |
| Income tax effect | 1.0 | (1.2) |
| NET OTHER COMPREHENSIVE INCOME/(LOSS) NOT TO BE RECLASSIFIED TO PROFIT OR LOSS IN SUBSEQUENT PERIODS |
(16.8) | (39.0) |
| OTHER COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR, NET OF TAX |
(14.9) | (53.0) |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR, NET OF TAX |
331.4 | 270.0 |
| Attributable to: | ||
| Owners of the Parent | 328.9 | 271.9 |
| Non-controlling interest | 2.5 | (2.0) |
| As of 31 December | As of 31 December | |
|---|---|---|
| In million EUR | 2016 | 2017 |
| Assets | ||
| Non-current assets | ||
| Property, plant and equipment | 561.6 | 710.3 |
| Intangible assets | 224.4 | 910.6 |
| Investments in associates | 373.7 | 329.2 |
| Investment properties | 6.2 | 5.7 |
| Deferred tax assets | 48.2 | 31.5 |
| Trade and other receivables | 2.8 | 9.4 |
| 1,216.8 | 1,996.6 | |
| Current assets | ||
| Assets held for sale | 1.5 | 0.6 |
| Investment securities | 12.0 | 0.0 |
| Inventories | 36.7 | 39.1 |
| Income tax receivable | 2.6 | 1.6 |
| Trade and other receivables | 481.8 | 719.4 |
| Cash and cash equivalents | 538.9 | 466.0 |
| 1,073.5 | 1,226.7 | |
| TOTAL ASSETS | 2,290.3 | 3,223.3 |
| Equity and liabilities | ||
| Equity attributable to equity holders of the Parent | ||
| Issued capital | 364.0 | 364.0 |
| Treasury shares | 0.0 | 0.0 |
| Reserves | 274.2 | 310.1 |
| Foreign currency translation | 2.5 | (11.5) |
| Retained earnings | 135.5 | 110.9 |
| 776.3 | 773.5 | |
| Non-controlling interests | 3.1 | 4.3 |
| TOTAL EQUITY | 779.3 | 777.8 |
| Non-current liabilities | ||
| Interest-bearing loans and borrowings | 47.7 | 58.4 |
| Employee benefits | 356.7 | 326.9 |
| Trade and other payables | 40.3 | 45.2 |
| Provisions | 31.6 | 24.2 |
| Deferred tax liabilities | 1.1 | 12.3 |
| 477.3 | 467.0 | |
| Current liabilities | ||
| Interest-bearing loans and borrowings | 10.3 | 699.9 |
| Bank overdrafts | 0.0 | 0.0 |
| Provisions | 27.1 | 21.2 |
| Income tax payable | 31.4 | 39.3 |
| Trade and other payables | 964.8 | 1,218.2 |
| 1,033.6 | 1,978.5 | |
| TOTAL LIABILITIES | 1,511.0 | 2,445.5 |
| TOTAL EQUITY AND LIABILITIES | 2,290.3 | 3,223.3 |
| In million EUR | ISSUED CAPITAL AUTHORIZED & TREASURY SHARES |
RESERVES OTHER |
ON TRANSLATI CURRENCY GN FOREI |
EARNINGS RETAINED |
TOTAL | CONTROLLING INTERESTS NON |
TOTAL EQUITY |
|---|---|---|---|---|---|---|---|
| AS PER 1 JANUARY 2016 | 364.0 0.0 |
230.9 | 0.6 | 99.3 | 694.8 | 0.0 | 694.8 |
| Profit for the year 2016 | 343.8 | 343.8 | 2.5 | 346.2 | |||
| Other comprehensive income | 82.5 | 1.9 | (99.3) | (14.9) | (14.9) | ||
| TOTAL COMPREHENSIVE INCOME | 0.0 0.0 |
82.5 | 1.9 | 244.5 | 328.9 | 2.5 | 331.4 |
| Dividends (Pay-out) | (48.0) | (212.0) | (260.0) | (2.0) | (262.0) | ||
| Other | 8.9 | 3.7 | 12.6 | 2.6 | 15.2 | ||
| AS OF 31 DECEMBER 2016 | 364.0 0.0 |
274.2 | 2.5 | 135.5 | 776.3 | 3.1 | 779.3 |
| AS PER 1 JANUARY 2017 | 364.0(0.0) | 274.2 | 2.5 | 135.5 | 776.3 | 3.1 | 779.3 |
| Profit for the year 2017 | 324.9 | 324.9 | (2.0) | 322.9 | |||
| Other comprehensive income | 96.5 | (14.0) | (135.5) | (53.0) | (53.0) | ||
| TOTAL COMPREHENSIVE INCOME | 0.0 0.0 |
96.5 (14.0) | 189.4 | 271.9 (2.0) | 270.0 | ||
| Dividends (Pay-out) | (50.0) | (212.0) | (262.0) | 0.0 | (262.0) | ||
| Other | (10.7) | (2.0) | (12.7) | 3.2 | (9.5) | ||
| AS OF 31 DECEMBER 2017 | 364.0(0.0) | 310.1 (11.5) | 110.9 | 773.5 | 4.3 | 777.8 |
| Year-to-date | 4th quarter | |||
|---|---|---|---|---|
| In million EUR | 2016 | 2017 | 2016 | 2017 |
| Operating activities | ||||
| Profit before tax | 489.5 | 488.7 | 121.0 | 106.9 |
| Depreciation and amortization | 89.8 | 105.1 | 23.5 | 35.9 |
| Impairment on bad debts | 1.6 | 3.3 | 0.8 | 2.6 |
| Gain on sale of property, plant and equipment | (17.0) | (15.9) | (4.6) | (9.0) |
| Other non-cash items | (0.4) | (8.1) | (0.4) | (3.2) |
| Change in employee benefit obligations | 4.7 | (29.1) | (2.6) | 1.4 |
| Share of profit of associates | (9.9) | (9.6) | (1.4) | (1.6) |
| Dividends received | 0.0 | 11.8 | 0.0 | 6.0 |
| Income tax paid | (130.4) | (125.2) | (53.3) | (55.6) |
| Income tax paid on previous years | (20.9) | (15.0) | 0.0 | 0.0 |
| CASH FLOW FROM OPERATING ACTIVITIES BEFORE CHANGES IN WORKING CAPITAL AND PROVISIONS |
407.0 | 405.9 | 83.0 | 83.4 |
| Decrease/(increase) in trade and other receivables | (6.6) | (91.1) | (70.8) | (172.3) |
| Decrease/(increase) in inventories | 2.0 | (0.3) | 2.5 | (0.3) |
| Increase/(decrease) in trade and other payables | (36.7) | (33.3) | 104.2 | 139.7 |
| Increase/(decrease) in provisions | (13.1) | (15.2) | 4.5 | (3.8) |
| NET CASH FROM OPERATING ACTIVITIES | 352.6 | 266.1 | 123.5 | 46.7 |
| Investing activities Proceeds from sale of property, plant and equipment |
27.2 | 24.0 | 9.3 | 12.8 |
| Acquisition of property, plant and equipment | (72.7) | (96.7) | (38.2) | (43.3) |
| Acquisition of intangible assets | (12.3) | (24.7) | (4.2) | (11.1) |
| Acquisition of other investments | (12.0) | 12.0 | (11.5) | 0.0 |
| Acquisition of subsidiaries, net of cash acquired | (89.0) | (666.6) | (44.3) | (581.7) |
| NET CASH USED IN INVESTING ACTIVITIES | (158.7) | (751.9) | (89.0) | (623.2) |
| Financing activities | ||||
| Proceeds from borrowings and finance lease liabilities | 1.6 | 692.5 | 1.0 | 691.9 |
| Repayments related to borrowings and financing lease liabilities |
(9.7) | (13.7) | (9.5) | (13.3) |
| Interim dividend paid to shareholders | (212.0) | (212.0) | (212.0) | (212.0) |
| Dividends paid | (48.0) | (50.0) | 0.0 | 0.0 |
| Dividends paid to minority interests | (2.0) | 0.0 | 0.0 | 0.0 |
| NET CASH FROM FINANCING ACTIVITIES | (270.1) | 416.8 | (220.6) | 466.6 |
| NET INCREASE IN CASH AND CASH EQUIVALENTS |
(76.2) | (68.9) | (186.1) | (110.0) |
| NET FOREIGN EXCHANGE DIFFERENCE | (0.4) | (3.9) | 0.9 | (1.8) |
| Cash and cash equivalent less bank overdraft as of 1st January |
615.5 | 538.9 | ||
| Cash and cash equivalent less bank overdraft as of 31 December |
538.9 | 466.0 | ||
| MOVEMENTS BETWEEN 1ST JANUARY AND 31 DECEMBER |
(76.6) | (72.9) |
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