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bpost SA/NV
Earnings Release • Feb 28, 2025
3922_iss_2025-02-28_2cc0da2f-8af1-44d1-b106-4c8f467842be.pdf
Earnings Release
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bpostgroup delivers results in line with expectations. Staci contribution and successful peak execution help offset the impact of new Press contracts and revenue pressures in North America
Fourth quarter 2024 highlights
- Group operating income at 1,335.0 mEUR, +9.7% or +117.8 mEUR compared to last year, including 214.1 mEUR contribution from Staci which has been consolidated as of August 1, 2024.
- Group adjusted EBIT at 84.0 mEUR (margin of 6.3%) versus last year at 74.1 mEUR. EBIT, reflecting new Press contracts and North American pressures offset by Staci's contribution (26.4 mEUR). Group reported EBIT at -222.9 mEUR, down by -293.8 mEUR compared to last year, due to 299.4 mEUR of non-cash impairment charges on Radial US in the context of material recent client churn, combined with a continued challenging market environment and related materializing downside risks tied to the long term plan.
- BeNe Last Mile
- Total operating income at 614.3 mEUR (-3.6%) or -23.0 mEUR.
- -21.3 mEUR from lower Press revenues.
- Underlying mail volume decline (excluding Press) of -8.1% mitigated by +5.3% price/mix impact.
- Parcels volumes increased by +6.9% and price/mix impact of +0.6%.
- Nearly stable opex despite salary indexation, slightly lower FTEs and lower cost of sales.
- Reported EBIT at 24.1 mEUR (3.9% margin) and adjusted EBIT at 24.8 mEUR (4.0% margin).
- 3PL
- Total operating income at 568.8 mEUR (+36.5%) driven by the integration of Staci (214.1 mEUR), continued expansion at Radial Europe and Active Ants (+14.6%), offset by lower revenues at Radial North America from continued volume pressure.
- Higher opex from Staci consolidation, offsetting reduced opex from lower US volumes and productivity gains.
- Reported EBIT at -262.7 mEUR impacted by the impairment charges related to Radial US (299.4 mEUR) and adjusted EBIT at 45.3 mEUR (8.0% margin).
- Global Cross-border
- Total operating income at 173.8 mEUR (-7.2%) reflecting lower revenues from Landmark US downtrading customers, higher cross-border sales reflecting growth from existing and recent customer wins in Europe and Asia.
- Lower opex from lower volume driven transport costs and higher payroll costs.
- Reported EBIT at 23.5 mEUR (13.5% margin) and adjusted EBIT at 23.6 mEUR (13.6% margin).
- For the full year 2024, group adjusted EBIT of 224.9 mEUR is in line with guidance. bpostgroup delivers annual results driven by domestic Parcels growth, Staci's contribution, and Radial's productivity gains, which help mitigate the impact of new Press contracts and topline pressures in North America.
- Adjusted group net profit for the full year 2024 came in at 122.7 mEUR while reported group net result stood at -209.2 mEUR, due to the impairment charges on Radial US (299.4 mEUR).
- In line with the negative IFRS net result and the dividend policy, the Board of Directors will propose to the General Shareholders' Meeting in May 2025 not to pay a dividend this year.
CEO quote
Chris Peeters, CEO of bpostgroup: "Thanks to the dedication and commitment of our teams across the globe, we successfully executed the end-of-year peak. Despite challenging market conditions and various headwinds, our Q4 and full-year results remain in line with our financial guidance. Once again, bpostgroup has demonstrated strong resilience. Our results confirm that Staci is already making a significant contribution, as expected, and its integration into the Group is progressing well.
2025 will be a transformational year as we move towards becoming a regional digital expert in parcel-size logistics. The foundations for future growth are in place, we need to lay them out and build on them. This means accelerating our transformation in Belgium, reinforcing our 3PL strategy, and further diversifying our cross-border activities. To achieve these ambitions, we are strengthening our structure and organization.
Undoubtedly, this year will bring challenges. We have already encountered some: in Last Mile, we faced several days of strikes in an already complex social climate in Belgium. At Radial North America, we are experiencing customer departures, and we have yet to reverse the churn trend. However, all our teams are working together to regain the trust of our employees, customers, and shareholders - in order to strengthen our company for the future."
Outlook for 2025
In the context of its ongoing transformation, bpostgroup projects an adjusted EBIT of 150-180 mEUR for 2025, with Staci's strategic contribution helping to mitigate domestic challenges and the impact of new Press contracts, while Radial US's strong cost control alleviates topline pressure from recent customer losses. The group's total operating income for 2025 is expected to grow by a high single digit percentage1 .
BeNe Last Mile
- Slightly lower total operating income1 , notably driven by:
- o c. 55 mEUR lower Press revenues from 2024 new contracts and structural volume decline.
- o Mail (excluding Press): lower revenues reflecting a volume decline -7% to -9% and a price increase and mix impacts of 4% to 5%.
- o Parcels: higher revenues reflecting mid- to high single-digit percentage underlying volume growth and low single-digit percentage price/mix, excluding strike impacts
- 2 to 3% adjusted EBIT margin reflecting beyond structural mail impact margin erosion from new Press contracts, higher payroll costs due to salary indexations 2 , strikes and delays in reorganizations affecting efficiency improvement targets.
3PL
- 20-25% growth in total operating income1 , driven by:
- o Consolidation of Staci (acquired in August '24, mid-single digit % growth proforma)
- o Continued growth of Active Ants and Radial Europe, and
- o Radial US net revenues decline due to enterprise customer losses, with contributions from new mid-market customers (including Radial Fast Track program) not yet compensating the impact, amid adverse market conditions.
- 4 to 6% adjusted EBIT margin reflecting (i) Staci's contribution (EBIT margin of 10-12%) and (ii) accelerated productivity improvement at Radial US, along with costs reductions to mitigate topline pressures.
Global Cross-border
- Mid-single-digit percentage growth1 in total operating income reflecting:
- o Gradual topline recovery at Landmark Global US driven by customer wins.
- o Continued growth of European and Asian Cross-Border Commercial activities including the development of new lanes.
- 11 to 13% adjusted EBIT margin with profitability dilution mainly tied to product mix (commercial vs. postal).
Group adjusted EBIT will include a decline in EBIT at Corporate level reflecting higher payroll costs from salary indexations, higher FTEs, and increased OPEX to support transformation initiatives.
Gross capex envelope is expected to be around 180.0 mEUR.
For more information: Antoine Lebecq T. +32 2 276 2985 (IR) corporate.bpost.be/investors
Veerle Van Mierlo T. +32 472 920229 (Media) [email protected]
1 based on macro-economic assumptions as of February 28, 2024, does not capture direct / indirect revenues strike impacts, potential impacts from US trade tariffs
2 based on latest monthly forecast, the next +2% salary indexations should occur in March and October '25, resulting in a weighted average annual indexation of +3.0%
Fourth quarter 2024 Press release Brussels, 28/02/2025 – 07:00 AM (CET) Regulated information bpostgroup.com/investors
Key figures3
| 4th quarter (in million EUR) | |||||
|---|---|---|---|---|---|
| Reported | Adjusted | ||||
| 2023 | 2024 | 2023 | 2024 | % Δ | |
| Total operating income | 1,217.2 | 1,335.0 | 1,217.2 | 1,335.0 | 9.7% |
| Operating expenses (excl. D&A) | 1,063.6 | 1,154.0 | 1,063.6 | 1,155.9 | 8.7% |
| EBITDA | 153.6 | 181.0 | 153.6 | 179.1 | 16.6% |
| Depreciation and amortization | 82.7 | 403.9 | 79.6 | 95.1 | 19.5% |
| EBIT | 70.9 | (222.9) | 74.1 | 84.0 | 13.4% |
| Margin (%) | 5.8% | - | 6.1% | 6.3% | |
| Result before tax | 43.0 | (230.7) | 46.1 | 76.2 | 65.3% |
| Income tax expense | 10.5 | 26.8 | 11.6 | 28.7 | - |
| Net result | 32.4 | (257.5) | 34.6 | 47.5 | 37.4% |
| FCF | 110.4 | 220.6 | 75.9 | 193.2 | - |
| Net debt/(Net cash) as of 31 December | 420.5 | 1,800.4 | 420.5 | 1,800.4 | - |
| CAPEX | 48.1 | 64.2 | 48.1 | 64.2 | |
| Average FTE & Interims | 39,374 | 41,027 | 39,374 | 41,027 |
Year-to-date (in million EUR)
| Reported | Adjusted | ||||
|---|---|---|---|---|---|
| 2023 | 2024 | 2023 | 2024 | % Δ | |
| Total operating income | 4,272.2 | 4,341.3 | 4,272.2 | 4,341.3 | 1.6% |
| Operating expenses (excl. D&A) | 3,794.4 | 3,807.2 | 3,719.4 | 3,786.4 | 1.8% |
| EBITDA | 477.8 | 534.1 | 552.8 | 554.9 | 0.4% |
| Depreciation and amortization | 317.0 | 652.1 | 304.3 | 330.1 | 8.5% |
| EBIT | 160.8 | (118.1) | 248.5 | 224.9 | -9.5% |
| Margin (%) | 3.8% | - | 5.8% | 5.2% | |
| Result before tax | 119.2 | (148.8) | 206.9 | 194.1 | -6.2% |
| Income tax expense | 54.5 | 60.4 | 59.0 | 71.4 | 21.1% |
| Net result | 64.8 | (209.2) | 147.9 | 122.7 | -17.1% |
| FCF | 223.8 | (887.1) | 220.7 | (875.3) | - |
| Net debt/(Net cash) as of 31 December | 420.5 | 1,800.4 | 420.5 | 1,800.4 | - |
| CAPEX | 154.7 | 146.6 | 154.7 | 146.6 | |
| Average FTE & Interims | 37,782 | 37,500 | 37,782 | 37,500 |
3 Adjusted figures are not audited and definition of adjusted is included in section Alternative Performance Measures.
Group overview
Fourth quarter 2024
Compared to last year, total operating income increased by +117.8 mEUR or +9.7% to 1,335.0 mEUR:
- External operating income BeNe Last Mile decreased by -22.2 mEUR and amounted to 592.5 mEUR, lower revenues from new Press contracts partially offset by parcel volume growth.
- External operating income 3PL increased by +152.4 mEUR or +36.7% to 568.1 mEUR mainly due to the contribution of Staci and e-commerce logistics momentum in Europe, partially offset by continuous pressure in North America.
- External operating income Global Cross-border decreased by -12.7 mEUR or -6.9% to 173.0 mEUR mainly due to downtrading customers in North America, partially offset by expansion efforts in Europe and domestic inbound volumes
- Corporate external operating income increased by +0.4 mEUR .
Operating expenses (including D&A) increased by -411.6 mEUR, due to higher operating expenses (including D&A) in line with the acquisition of Staci and the non-cash impairment charges related to Radial US (299.4 mEUR). Excluding the acquisition of Staci and the impairment, operating expenses (including D&A) decreased by +81.9 mEUR mainly driven by lower variable operating expenses in line with the revenue development (mainly in North America), partially offset by higher FTE costs driven by inflation.
Successful peak execution and Staci contribution help offset the impact of new Press contracts and revenue pressures in North America, as a result and when excluding the non-cash impairment charges related to Radial US reported EBIT slightly increased by +5.6 mEUR and amounted to 76.5 mEUR. Adjusted EBIT increased by +9.9 mEUR and amounted to 84.0 mEUR.
Net financial result (i.e. net of financial income and financial costs) increased by +20.1 mEUR mainly due to last year's non-cash negative financial result related to IAS 19 employee benefits triggered by a decrease in discount rates at that time and favourable exchange difference results, partially offset by higher interests costs given increased loans, borrowings and leases.
Income tax expense increased by -16.2 mEUR compared to last year.
Group net result at -257.5 mEUR, excluding impairment charges (299.4 mEUR) net result increased by +41.9 mEUR compared to last year partially due to the integration of Staci and the improvement of the net financial result. Adjusted group net profit amounted to 47.5 mEUR or increased by 12.9 mEUR compared to last year.
Full year 2024
Compared to last year, total operating income increased by +69.1 mEUR or +1.6% to 4,341.3 mEUR:
- External operating income BeNe Last Mile decreased by -55.4 mEUR and amounted to 2,272.2 mEUR mainly due to lower revenues from new Press contracts, resilient mail revenues partially offset by strong parcel volume growth.
- External operating income of 3PL increased by +145.1mEUR or +11.1% and amounted to 1,455.5 mEUR as the Staci contribution and e-commerce logistics momentum in Europe were offset by continuous pressure in North America.
- External operating income of Global Cross-border decreased by -17.9 mEUR or -2.9% to 609.3 mEUR mainly due to downtrading customers and Amazon's insourcing in North America partially offset by expansion efforts in Europe.
- Corporate external operating income decreased by -2.7 mEUR due to lower building sales compared to last year.
Operating expenses (including D&A) increased by -348.0 mEUR, excluding last year's provision of 75.0 mEUR related to the repayment to the Belgian State for potential overcompensations for the years prior 2023 and the non-cash impairment charges related to Radial US (299.4 mEUR), operating expenses increased by -123.6 mEUR. This increase was due to higher operating expenses (including D&A) in line with the acquisition of Staci and higher payroll costs partially offset by lower variable operating expenses in line with the revenue development (mainly in North America).
Reported EBIT amounted to -118.1 mEUR and decreased by -278.9 mEUR compared to last year, excluding last year's provision related to overcompensation and the impairment charges related to Radial US, reported EBIT decreased by -54.4 mEUR. This decrease was mainly driven by the impact of the new Press contracts and topline pressures in North America, partially offset by Domestic Parcels growth and Radial productivity gains. Adjusted EBIT amounted to 224.9 mEUR and decreased by -23.6 mEUR or -9.5% compared to last year.
Net financial result (i.e. net of financial income and financial costs) of 2024 amounted to -30.8 mEUR and increased by 10.8 mEUR compared to 2023. This increase was primarily due to last year's non-cash negative financial result related to IAS 19 employee benefits triggered by a decrease in discount rates at that time and favourable exchange difference results, partially offset by higher banking fees, higher interests costs given increased loans, borrowings and leases.
Income tax expense increased by -5.9 mEUR compared to last year. Note that last year's provision of 75.0 mEUR related to overcompensation was already net of corporate income taxes.
Group net result amounted to -209.2 mEUR and decreased by -274.0 mEUR, to a large extent due to the impairment for Radial US and partially offset by last year's provision for overcompensation. Adjusted group net profit – amongst other adjusted for last year's provision for overcompensation and Radial US impairment - amounted to 122.7 mEUR or 25.2 mEUR (-17.1%) lower than last year.
Business Unit performance: BeNe Last Mile
| BeNe Last Mile | Year-to-date | 4 th quarter |
||||
|---|---|---|---|---|---|---|
| In million EUR | 2023 | 2024 | % Δ | 2023 | 2024 | % Δ |
| Transactional mail | 747.1 | 724.3 | -3.1% | 189.6 | 180.4 | -4.8% |
| Advertising mail | 179.0 | 191.8 | 7.2% | 48.6 | 51.1 | 5.2% |
| Press | 349.6 | 299.0 | -14.5% | 89.2 | 67.9 | -23.8% |
| Parcels Belgium | 499.1 | 531.3 | 6.5% | 143.8 | 154.5 | 7.4% |
| Proximity and convenience retail network | 292.1 | 271.7 | -7.0% | 76.2 | 71.8 | -5.7% |
| Value added services | 132.5 | 118.9 | -10.3% | 33.5 | 30.2 | -9.7% |
| Personalised Logistics | 133.1 | 129.7 | -2.5% | 34.2 | 34.8 | 1.9% |
| Intersegment operating income & other | 66.9 | 82.8 | 23.8% | 22.4 | 23.6 | 5.1% |
| TOTAL OPERATING INCOME | 2,399.4 | 2,349.5 | -2.1% | 637.4 | 614.3 | -3.6% |
| Operating expenses | 2,198.7 | 2,122.8 | -3.5% | 575.9 | 571.5 | -0.8% |
| EBITDA | 200.6 | 226.7 | 13.0% | 61.5 | 42.9 | -30.2% |
| Depreciation, amortization (reported) | 99.9 | 95.8 | -4.1% | 25.9 | 18.8 | -27.4% |
| RESULT FROM OPERATING ACTIVITIES (EBIT Reported) |
100.7 | 130.9 | 30.0% | 35.5 | 24.1 | -32.3% |
| Margin (%) | 4.2% | 5.6% | 5.6% | 3.9% | ||
| RESULT FROM OPERATING ACTIVITIES (EBIT Adjusted) |
178.6 | 133.7 | -25.1% | 36.2 | 24.8 | -31.7% |
| Margin (%) | 7.4% | 5.7% | 5.7% | 4.0% |
Fourth quarter 2024
Total operating income in the fourth quarter 2024 amounted to 614.3 mEUR and showed a decrease of -23.0 mEUR or -3.6% mainly driven by the end of the Press Concession as from 1st of July.
Revenues from Domestic mail (i.e. Transactional, Advertising and Press combined) decreased by -27.9 mEUR to 299.5 mEUR, mainly driven by lower Press revenues (-21.3 mEUR) tied to new Press contracts and the structural volume decline of -7.5%. Revenues in Transactional and Advertising mail down by -6.7 mEUR or -2.8%, due to underlying volume decline of -8.1% partly compensated by price/mix impact of +5.3%.
| BeNe Last Mile | Year-to-date | th 4 quarter |
|||
|---|---|---|---|---|---|
| Evolution underlying volumes | 2023 | 2024 | 2023 | 2024 | |
| Domestic mail | -8.4% | -5.7% | -8.1% | -7.0% | |
| Transactional mail | -9.2% | -8.4% | -9.2% | -10.2% | |
| Advertising mail | -11.9% | +2.5% | -8.7% | +0.2% | |
| Press | -9.4% | -8.7% | -11.2% | -7.5% | |
| Parcels volume | +6.3% | +5.3% | +3.4% | +6.9% |
Revenues Parcels Belgium increased by +10.7 mEUR (or +7.4%) to 154.5 mEUR resulting from parcels volume increase of +6.9%, reflecting strong contribution and outperformance of marketplaces, and improved price/mix increase of +0.6%.
Proximity and convenience retail network decreased by -4.3 mEUR (or -5.7%) to 71.8 mEUR, mainly driven by the indexation of the Management Contract offset by lower banking revenues.
Value added services amounted to 30.2 mEUR and showed a decrease of -3.2 mEUR versus last year. Stable operational revenues offset by negative repricing impact now reported under VAS (vs. Other revenue in 2023).
Personalised Logistics amounted to 34.8 mEUR and slightly increased by +0.7m EUR, reflecting nearly stable revenues from DynaGroup.
Operating expenses (including D&A) decreased by +11.5 mEUR or -1.9%, as the higher salary costs per FTE (+3.4% from 2 salary indexations year-over-year) was more than offset by slightly lower FTEs despite higher parcel volumes, lower costs of sales and lower depreciation and amortisation.
Reported EBIT decreased by -11.5 mEUR to 24.1 mEUR due to the new Press contracts and payroll cost inflation, adjusted EBIT amounted to 24.8 mEUR.
Full year 2024
Total operating income in 2024 amounted to 2,349.5 mEUR and showed a decrease of -49.9 mEUR or -2.1%, mainly driven by the end of the Press Concession as from 1st of July 2024. Furthermore higher intersegment revenues from inbound Cross-border volumes handled in the domestic network and 10.0 mEUR higher other revenue in 2024 tied to last year's impact of State services repricing, in 2024 recognized under VAS.
Revenues from Domestic mail (i.e. Transactional, Advertising and Press combined) decreased by -60.7 mEUR to 1,215.1 mEUR, mainly driven the decrease of the Press revenue. Press revenues decreased by -50.6 mEUR reflecting the structural volume decline (-8.7%), reduced governmental compensation for extended Press concession in the first half of the year 2024 (-7.7 mEUR) and the end of the Press Concession as of the 1st of July 2024. Revenues in Transactional and Advertising mail slightly down by - 10.1 mEUR or -1.1%, including approximately 6.0 mEUR uplift from European, Federal and Regional elections in June and September 2024, due to the underlying volume decline of -6.3% partly compensated by price/mix impact of +5.2%.
| BeNe Last Mile Evolution underlying volumes |
1Q23 | 2Q23 | 3Q23 | 4Q23 | FY23 | 1Q24 | 2Q24 | 3Q24 | 4Q24 | YTD 24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Domestic mail | -8.8% | -8.3% | -8.2% | -8.1% | -8.4% | -6.7% | -2.9% | -6.3% | -7.0% | -5.7% |
| Transactional |
-9.9% | -8.5% | -9.2% | -9.2% | -9.2% | -8.3% | -6.4% | -8.9% | -10.2% | -8.4% |
| Advertising mail | -11.8% | -14.8% | -12.3% | -8.7% | -11.9% | -3.8% | +11.6% | +2.4% | +0.2% | +2.5% |
| Press | -9.5% | -3.7% | -7.9% | -11.2% | -9.4% | -10.3% | -5.6% | -11.9% | -7.5% | -8.7% |
| Parcels | +9.1% | +7.8% | +5.5% | +3.4% | +6.3% | +2.9% | +2.5% | +8.7% | +6.9% | +5.3% |
Parcels Belgium increased by +32.2 mEUR (or +6.5%) to 531.3 mEUR resulting from the parcels volume growth of +5.3%, mainly driven by strong contribution and outperformance of marketplaces and improved price/mix of +1.2%.
Proximity and convenience retail network decreased by -20.3 mEUR to 271.7 mEUR mainly driven by the indexation of the Management Contract offset by lower banking revenues.
Stable operational revenues for Value added services, as the revenues amounted to 118.9 mEUR and showed a decrease of -13.6 mEUR versus last year due to the negative repricing impact now reported under VAS (vs. Other revenue in 2023).
Personalised Logistics amounted to 129.7 mEUR and decreased by -3.4 mEUR in 2024 reflecting lower revenues from DynaGroup.
Operating expenses (including D&A) decreased by +80.1 mEUR or -3.5%, mainly driven by last year's provision related to overcompensation (75.0 mEUR). Excluding this provision, operating expenses (including D&A) remained stable as the higher salary costs per FTE (+3% from 2 salary indexations year-over-year) was more than offset by stable FTE's despite higher parcel volumes, lower intersegment Corporate costs and higher recoverable VAT.
Reported EBIT increased by +30.2 mEUR and amounted to 130.9 mEUR mainly due to last year's provision for overcompensation. Adjusted EBIT decreased by -44.8 mEUR with a margin of 5.7%, this decrease was driven by the new Press contracts and payroll cost inflation.
Business Unit performance: 3PL
| 3PL | Year-to-date | th 4 quarter |
|||||
|---|---|---|---|---|---|---|---|
| In million EUR | 2023 | 2024 | % Δ | 2023 | 2024 | % Δ | |
| 3PL Europe | 158.0 | 516.2 | - | 45.3 | 265.2 | - | |
| 3PL North America | 1,150.9 | 936.1 | -18.7% | 370.3 | 301.1 | -18.7% | |
| Intersegment operating income & other | 7.1 | 8.0 | 12.0% | 1.2 | 2.5 | 108.4% | |
| TOTAL OPERATING INCOME | 1,316.0 | 1,460.4 | 11.0% | 416.8 | 568.8 | 36.5% | |
| Operating expenses | 1,196.4 | 1,271.3 | 6.3% | 370.0 | 473.5 | 28.0% | |
| EBITDA | 119.5 | 189.1 | 58.1% | 46.8 | 95.3 | - | |
| Depreciation, amortization (reported) | 112.6 | 455.7 | - | 28.9 | 358.0 | - | |
| RESULT FROM OPERATING ACTIVITIES (EBIT Reported) |
7.0 | (266.7) | - | 17.9 | (262.7) | - | |
| Margin (%) | 0.5% | - | 4.3% | - | |||
| RESULT FROM OPERATING ACTIVITIES (EBIT Adjusted) |
16.2 | 52.0 | - | 20.2 | 45.3 | - | |
| Margin (%) | 1.2% | 3.6% | 4.9% | 8.0% |
Fourth quarter 2024
Total operating income amounted to 568.8 mEUR and increased by +152.0 mEUR (+36.5%), mainly driven by the integration of Staci (+214.1 mEUR) as from August 2024. Excluding Staci, total operating income down by -62.1 mEUR due to lower revenues at Radial North America.
3PL Europe revenues increased by +219.8 mEUR to 265.2 mEUR reflecting the acquisition of Staci on August 1, 2024 (consolidation impact of 213.9 mEUR). In addition, Radial Europe and Active Ants revenue grewby +14.6% reflecting higher sales from international expansion (new customer onboardings) and upselling from existing customers.
3PL North America revenues decreased by -69.2m EUR or -18.7% reflecting the decrease in Radial North America revenues from lower sales of existing customers and contribution of new customers partially mitigating the revenue churn from terminated contracts announced in 2023.
Operating expenses (including D&A) increased by -432.6 mEUR resulting from the non-cash impairment charges on Radial US (299.4 mEUR) and the integration of Staci as of August 1, 2024. Excluding Staci and the impairment charges, operating expenses decreased by +60.9 mEUR reflecting lower variable operating expenses in line with the revenue development in Radial North America, sustained improvement in Radial North America's variable contribution margin (+5.5% year-over-year, reaching a record high in peak period).
Reported EBIT amounted to -262.7 mEUR down by -280.6 mEUR, mainly driven by the non-cash impairment charges on Radial US (299.4 mEUR). Adjusted EBIT amounted to 45.3 mEUR (up by +25.1 mEUR) with a margin of 8.0%. At constant perimeter, adjusted EBIT down by -1.3 mEUR given the Staci consolidation impact of 26.4 mEUR, as productivity gains in North America offset topline pressure.
Full year 2024
Total operating income amounted to 1,460.4 mEUR and increased by +144.4 mEUR, or +11.0% as the continued revenue pressure at Radial North America was offset by the integration of Staci (+338.1 mEUR).
3PL Europe increased by +358.3 mEUR to 516.2 mEUR reflecting the acquisition of Staci on August 1, 2024 (337.7 mEUR). In addition, Radial Europe and Active Ants revenue grew by +13.8% reflecting higher sales from international expansion (new customer onboardings) and upselling from existing customers.
3PL North America decreased by -214.8 mEUR or -18.7%, reflecting lower sales from existing customers and contribution of new customers partially mitigating revenue churn from terminated contracts announced in 2023.
Fourth quarter 2024 Press release Brussels, 28/02/2025 – 07:00 AM (CET) Regulated information bpostgroup.com/investors
Operating expenses (including D&A) increased by -418.0 mEUR resulting from the non-cash impairment charges on Radial US and the integration of Staci as of August 1, 2024. Excluding Staci and the impairment charges, operating expenses decreased by +189.3 mEUR reflecting lower variable operating expenses in line with the revenue development in Radial North America, sustained improvement in Radial North America's variable contribution margin (+4.6% year-over-year, currently at its highest level).
Reported EBIT amounted to -266.7 mEUR down by -273.6 mEUR mainly driven by the non-cash impairment charges on Radial US (299.4 mEUR), more than offset by Staci's contribution and productivity gains in Radial North America to partially offset topline pressure. Adjusted EBIT amounted to 52.0 mEUR, up by +35.8 mEUR. At constant perimeter, adjusted EBIT down by -5.0 mEUR as Staci consolidation impact of 40.7 mEUR.
Business Unit performance: Global Cross-border
| Global Cross-border | Year-to-date | 4 th quarter |
|||||
|---|---|---|---|---|---|---|---|
| In million EUR | 2023 | 2024 | % Δ | 2023 | 2024 | % Δ | |
| Cross-border Europe | 349.5 | 361.6 | 3.5% | 100.6 | 103.0 | 2.4% | |
| Cross-border North America | 277.4 | 248.1 | -10.5% | 85.3 | 69.9 | -18.0% | |
| Intersegment operating income & other | 6.6 | 5.1 | -22.8% | 1.5 | 0.9 | -35.1% | |
| TOTAL OPERATING INCOME | 633.4 | 614.8 | -2.9% | 187.3 | 173.8 | -7.2% | |
| Operating expenses | 519.1 | 511.4 | -1.5% | 153.3 | 143.7 | -6.2% | |
| EBITDA | 114.4 | 103.4 | -9.6% | 34.0 | 30.1 | -11.4% | |
| Depreciation, amortization (reported) | 23.6 | 24.2 | 2.6% | 6.3 | 6.6 | 5.7% | |
| RESULT FROM OPERATING ACTIVITIES (EBIT Reported) |
90.8 | 79.2 | -12.7% | 27.7 | 23.5 | -15.3% | |
| Margin (%) | 14.3% | 12.9% | 14.8% | 13.5% | |||
| RESULT FROM OPERATING ACTIVITIES (EBIT Adjusted) |
91.4 | 79.8 | -12.6% | 27.9 | 23.6 | -15.2% | |
| Margin (%) | 14.4% | 13.0% | 14.4% | 13.6% |
Fourth quarter 2024
Total operating income amounted to 173.8 mEUR and decreased by -13.5 mEUR (-7.2%) as downtrading customers in North America offset expansion efforts in Europe and domestic inbound volumes.
Cross-border Europe revenues increased by +2.4 mEUR (+2.4%) and amounted to 103.0 mEUR mainly from growth in Asian volumes with destination Belgium, expansion efforts in Europe and improving UK market conditions, partly offset by Asian consolidators shifting away from untracked services.
Cross-border North America revenues decreased by -15.3 mEUR (-18.0%) and amounted to 69.9 mEUR mainly reflecting continued underlying headwinds at Landmark US, mitigated by strong peak volume development boosted by positive volume transfer during Canada Post strike.
Operating expenses (including D&A) decreased by +9.2 mEUR or -5.8% mainly explained by lower volume driven transport costs in line with lower North American volumes and positive mix impact from higher volumeswith destination Belgium, slightly higher salary costs reflecting international activity ramp-up, inflationary pressure and absorption of unexpected peak volumes tied to Canada Post strike.
Reported EBIT and adjusted EBIT decreased by -4.2 mEUR compared to last year same period and respectively amounted to 23.5 mEUR (margin of 13.5%) and 23.6 mEUR (margin of 13.6%). Lower EBIT and margin dilution tied to ongoing pressure at Landmark US.
Full year 2024
Total operating income decreased by -18.6 mEUR (or -2.9%) and amounted to 614.8 mEUR.
Cross-border Europe increased by +12.1 mEUR and amounted to 361.6 mEUR mainly from existing and recent customer wins, growth in Asian volumes with destination Belgium, partly offset by continued adverse UK market conditions and Asian consolidators shifting away from untracked services.
Cross-border North America decreased by -29.2 mEUR and amounted to 248.1 mEUR mainly due to lower sales at Landmark US reflecting downtrading customers and limited contribution of new business and Amazon's insourcing.
Operating expenses (including D&A) were down by +7.1 mEUR or -1.3%, mainly explained by lower volume driven transport costs in line with lower North American volumes and positive mix impact from higher volumes with destination Belgium, slightly higher salary costs reflecting international activity ramp-up and inflationary pressure.
Fourth quarter 2024 Press release Brussels, 28/02/2025 – 07:00 AM (CET) Regulated information bpostgroup.com/investors
Reported EBIT and adjusted EBIT decreased by -11.6 mEUR compared to last year same period and respectively amounted to 79.2 mEUR (margin of 12.9%) and 79.8 mEUR (margin of 13.0%). Lower EBIT and margin dilution tied to ongoing pressures at Landmark US.
Business Unit performance: Corporate
| Corporate | Year-to-date | 4 th |
quarter | |||
|---|---|---|---|---|---|---|
| In million EUR | 2023 | 2024 | % Δ | 2023 | 2024 | % Δ |
| External operating income | 7.0 | 4.3 | -39.1% | 1.0 | 1.4 | 36.6% |
| Intersegment operating income | 422.6 | 406.8 | -3.7% | 109.9 | 111.2 | 1.2% |
| TOTAL OPERATING INCOME | 429.6 | 411.1 | -4.3% | 111.0 | 112.6 | 1.5% |
| Operating expenses | 386.4 | 396.2 | 2.5% | 99.6 | 99.9 | 0.4% |
| EBITDA | 43.3 | 14.9 | -65.6% | 11.4 | 12.7 | 11.6% |
| Depreciation, amortization (reported) | 81.0 | 76.4 | -5.6% | 21.6 | 20.5 | -5.3% |
| RESULT FROM OPERATING ACTIVITIES (EBIT Reported) |
(37.7) | (61.5) | 63.3% | (10.2) | (7.8) | -24.2% |
| Margin (%) | -8.8% | -15.0% | -9.2% | -6.9% | ||
| RESULT FROM OPERATING ACTIVITIES (EBIT Adjusted) |
(37.7) | (40.7) | 7.9% | (10.2) | (9.7) | -5.5% |
| Margin (%) | -8.8% | -9.9% | -9.2% | -8.6% |
Fourth quarter 2024
External operating income in the fourth quarter 2024 slightly increased (+0.4 mEUR) compared to last year.
Net operating expenses after intersegment (including D&A) decreased by +2.1 mEUR, reflecting higher FTEs and inflationary pressure on payroll costs (+3.4% from 2 salary indexations) offset by lower corporate costs (amongst other lower consultancy, legal support and ICT costs).
Reported EBIT at -7.8 mEUR and adjusted EBIT at -9.7 mEUR slightly up by +0.6 mEUR when excluding merger and acquisition costs.
Full year 2024
External operating income in 2024 decreased by -2.7 mEUR driven by lower building sales.
Net operating expenses after intersegment (including D&A) increased by -21.1 mEUR, mainly explained by the merger and acquisition costs (20.9 mEUR), by inflationary pressure on payroll costs (+3.0% from 2 salary indexations), and slightly higher FTEs tied to transformation and corporate projects.
Reported EBIT at -61.5 mEUR and adjusted EBIT at -40.7 mEUR down by -3.0 mEUR.
Cash flow statement
Fourth quarter 2024
| 4 th quarter (in million EUR) |
|||||||
|---|---|---|---|---|---|---|---|
| Reported | Adjusted | ||||||
| 2023 | 2024 | Δ | 2023 | 2024 | Δ | ||
| Cash flow from operating activities | 160.3 | 283.2 | +122.9 | 125.8 | 255.7 | +130.0 | |
| out of which CF from operating activities before ∆ in WC & provisions |
122.3 | 159.9 | +37.5 | 122.3 | 159.9 | +37.5 | |
| Cash flow from investing activities | (49.8) | (62.6) | (12.8) | (49.8) | (62.6) | (12.8) | |
| Free cash flow | 110.4 | 220.6 | +110.1 | 75.9 | 193.2 | 117.2 | |
| Financing activities | (203.9) | (74.7) | +129.2 | (203.9) | (74.7) | +129.2 | |
| Net cash movement | (93.5) | 145.9 | 239.4 | (128.0) | 118.5 | +246.5 | |
| Capex | 48.1 | 64.2 | +16.1 | 48.1 | 64.2 | +16.1 |
In the fourth quarter 2024, the net cash flow increased to 145.9 mEUR driven by a positive adjusted free cash flow.
Reported and adjusted free cash flow amounted respectively to 220.6 mEUR and 193.2 mEUR.
Cash flow from operating activities before change in working capital and provisions increased by 37.5 mEUR compared to the fourth quarter 2023, mainly explained by the positive EBITDA variation.
Cash flow related to collected proceeds due to Radial's clients was 7.1 mEUR lower (27.4 mEUR inflow in the fourth quarter 2024 compared to an inflow of 34.5 mEUR in the same period last year).
The variance in change in working capital and provisions (92.5 mEUR) was explained amongst others by terminal dues settlements, the evolution of the accounts receivable and the end of the Press concession as of July 1, 2024, which was traditionally settled in the following year.
Investing activities resulted in a cash outflow of 62.6 mEUR in the fourth quarter 2024, compared to a cash outflow of 49.8 mEUR for the same period last year. The evolution in the fourth quarter 2024 was mainly explained by higher capex (-16.1 mEUR) in 2024.
Capex stood at 64.2 mEUR in the fourth quarter 2024 and was mainly spent on international e-commerce logistics and on domestic fleet, mail infrastructure and parcels capacity.
In the fourth quarter 2024 the cash outflow relating to financing activities amounted to 74.7 mEUR compared to 203.9 mEUR last year, mainly driven by the repayment of the 185 mUSD term loan maturing on December 29, 2023 partially counterbalanced by increased leasing contracts related payments.
Full year 2024
| Year-to-date (in million EUR) |
|---|
| ------------------------------- |
| Reported | Adjusted | |||||
|---|---|---|---|---|---|---|
| 2023 | 2024 | Δ | 2023 | 2024 | Δ | |
| Cash flow from operating activities | 376.2 | 534.9 | +158.6 | 373.1 | 546.6 | +173.5 |
| out of which CF from operating activities before ∆ in WC & provisions |
418.9 | 498.0 | +79.2 | 418.9 | 498.0 | +79.2 |
| Cash flow from investing activities | (152.4) | (1,422.0) | (1,269.5) | (152.4) | (1,422.0) | (1,269.5) |
| Free cash flow | 223.8 | (887.1) | (1,110.9) | 220.7 | (875.3) | (1,096.0) |
| Financing activities | (428.7) | 758.6 | +1,187.3 | (428.7) | 758.6 | +1,187.3 |
| Net cash movement | (204.9) | (128.5) | +76.4 | (208.1) | (116.8) | +91.3 |
| Capex | 154.7 | 146.6 | (8.2) | 154.7 | 146.6 | (8.2) |
In 2024, the net cash outflow decreased compared to the same period last year by 76.4 mEUR to 128.5 mEUR. This decrease was driven by the positive working capital evolution, lower dividends paid, loans evolution partially compensated by the acquisition of Staci.
Reported and adjusted free cash flow amounted respectively to negative 887.1 mEUR and negative 875.3 mEUR.
Cash flow from operating activities before change in working capital and provisions increased by 79.2 mEUR compared to 2023 in line with the positive EBITDA variation – amongst other due to the provision for the overcompensation – and the lower corporate income tax payments.
Cash outflow related to collected proceeds due to Radial's clients was 14.9 mEUR higher (11.7 mEUR outflow in 2024 compared to an inflow of 3.2 mEUR last year).
The variance in change in working capital and provisions (+94.3 mEUR) was mainly explained by the favourable evolution of accounts receivable, including the end of the Press concession as July 1, 2024 which was traditionally settled in the following year, and the deferred payment of 2022 withholding taxes on payroll in the first quarter 2023 (+30.6 mEUR), a measure granted at that time by the Belgian government in the context of the energy crisis, partially offset by last year's provision related to overcompensation.
Investing activities resulted in a cash outflow of 1,422.0 mEUR in 2024, compared to a cash outflow of 152.4 mEUR last year. This evolution was mainly explained by the acquisition of Staci (1,277.3 mEUR) partially compensated by lower capex in 2024 (8.2 mEUR).
Capex stood at 146.6 mEUR in 2024 and was mainly spent on 3PL, domestic fleet, operational infrastructure, parcels & lockers capacity and site improvements. The decrease compared to last year was in line with the capital allocation to purchase logistics real estate for Radial North America instead of leasing (in line with capex guidance).
In 2024 the cash inflow relating to financing activities amounted to 758.6 mEUR compared to -428.7 mEUR last year, mainly explained by the bond issuance to acquire Staci (+1.0 bnEUR), a lower dividend payment (+53.9 mEUR) and the repayment of the 185 mUSD term loan maturing on December 29, 2023 partially compensated by leasing contracts related payments (-33.3 mEUR).
.
Condensed Consolidated Financial Statements
The condensed consolidated financial statements of bpost for the year ending December 31, 2024 were authorized for issue in accordance with a resolution of the Board of Directors on February 27, 2025. The joint statutory auditors, EY Bedrijfsrevisoren/Réviseurs d'Entreprises represented by Mr. Han Wevers and PVMD Bedrijfsrevisoren/Réviseurs d'Entreprises represented by Mr. Alain Chaerels, have confirmed that their audit procedures, which have been substantially completed, have not revealed any material adjustments which would have to be made to the accounting information included in this press release. The complete audit report related to the audit of the consolidated financial statements will be shown in the 2024 annual report that will be published in March 2025.
Condensed Consolidated Income Statement
| Year-to-date | 4 th quarter |
||||
|---|---|---|---|---|---|
| In million EUR | 2023 | 2024 | 2023 | 2024 | |
| Revenue | 4,257.5 | 4,328.7 | 1,213.4 | 1,329.9 | |
| Other operating income | 14.7 | 12.6 | 3.8 | 5.1 | |
| TOTAL OPERATING INCOME | 4,272.2 | 4,341.3 | 1,217.2 | 1,335.0 | |
| Material costs | )84.8( | )85.1( | )22.4( | )27.8( | |
| Services and other goods | )1,851.6( | )1,834.1( | )572.6( | )612.9( | |
| Payroll costs | )1,741.7( | )1,845.4( | )454.9( | )493.2( | |
| Other operating expenses | )116.3( | )42.6( | )13.6( | )20.1( | |
| Depreciation, amortization and impairment | )317.0( | )652.1( | )82.7( | )403.9( | |
| TOTAL OPERATING EXPENSES | )4,111.4( | )4,459.4( | )1,146.3( | )1,557.9( | |
| RESULT FROM OPERATING ACTIVITIES (EBIT) | 160.8 | )118.1( | 70.9 | )222.9( | |
| Financial income | 33.2 | 47.0 | 4.5 | 18.8 | |
| Financial costs | )74.8( | )77.8( | )32.4( | )26.6( | |
| Remeasurement of assets held for sale at fair value less costs to sell |
0.0 | 0.0 | 0.0 | 0.0 | |
| Share of results of associates and joint ventures | 0.0 | (0.0) | 0.0 | 0.1 | |
| RESULT BEFORE TAX | 119.2 | )148.8( | 43.0 | )230.7( | |
| Income tax expense | )54.5( | )60.4( | )10.5( | )26.8( | |
| RESULT FOR THE PERIOD (EAT) | 64.8 | (209.2) | 32.4 | (257.5) | |
| Attributable to: | |||||
| Equity holders of the parent | 65.7 | (210.2) | 32.2 | (257.5) | |
| Non-controlling interests | )1.0( | 1.0 | 0.3 | 0.0 |
EARNINGS PER SHARE
| Year-to-date | th 4 |
quarter | ||
|---|---|---|---|---|
| In EUR | 2023 | 2024 | 2023 | 2024 |
| ►basic, result for the period attributable to ordinary equity holders of the parent | 0.33 | (1.05) | 0.16 | (1.29) |
| ►diluted, result for the period attributable to ordinary equity holders of the parent | 0.33 | (1.05) | 0.16 | (1.29) |
As far as bpost is concerned, no effects of dilution affect the net result attributable to ordinary equity holders and the weighted average number of ordinary shares as there are no dilutive potential shares in issuance.
Condensed Consolidated Statement of Financial Position
| In million EUR | 2023 | 2024 | 2023 | 2024 | |
|---|---|---|---|---|---|
| Assets | Equity and liabilities | ||||
| Property, plant and equipment | 1,372.0 | 1,627.7 | Total equity | 1,026.5 | 854.8 |
| Intangible assets | 810.9 | 1,945.5 | Interest-bearing loans and borrowings (incl. overdraft) |
1,291.0 | 2,547.6 |
| Investments in associates and joint ventures |
0.1 | 0.1 | Employee benefits | 249.8 | 234.3 |
| Other assets | 38.0 | 29.1 | Trade and other payables | 1,432.5 | 1,430.5 |
| Trade and other receivables | 1,001.2 | 968.3 | Provisions | 106.0 | 115.6 |
| Inventories | 25.4 | 32.3 | Derivative instruments | 0.2 | 0.5 |
| Cash and cash equivalents | 870.6 | 747.4 | Other liabilities | 12.8 | 167.6 |
| Assets held for sale | 0.6 | 0.6 | Liabilities directly related to assets held for sale |
0.0 | 0.0 |
| TOTAL ASSETS | 4,118.8 | 5,351.0 | TOTAL EQUITY AND LIABILITIES |
4,118.8 | 5,351.0 |
Property, plant and equipment increased by 255.7 mEUR mainly driven by the integration of Staci, as well as the capital expenditure and the new right-of-use assets, partially offset by the depreciation.
Intangible assets increased by 1,134.6 mEUR on the one hand due to the acquisition of Staci, for which goodwill amounted to 826.4 mEUR and intangibles throughout purchase price allocation amounted to 570.0 mEUR (mainly customer relationships). On the other hand the non-cash impairment of the goodwill related to the Radial US explains a decrease of 299.4 mEUR.
The decrease of trade and other receivables by -32.9 mEUR was mainly driven by the settlement of the press concession for the year 2023, lower terminal dues and lower sales in the US, partially offset by the integration of Staci.
Cash & cash equivalents decreased by 123.2 mEUR mainly due to the acquisition of Staci, partially offset by the bonds issued (1 bnEUR) to acquire Staci.
The increase of the interest-bearing loans and borrowings by 1,256.6 mEUR was mainly explained by the issuance of a 1,000 million EUR dual-tranche senior unsecured bond offering across 5- and 10-year maturities and the increase of the lease liabilities, explained by the acquisition of Staci.
The slight decrease of trade and other payables by -2.0 mEUR was mainly due to the decrease of the terminal dues payables, partially offset by the increase of the social and trade (related) payables, explained by the integration of Staci.
The increase of the other liabilities was mainly explained by the increase of the deferred tax liabilities, mainly explained by the deferred tax liabilities recognised through the purchase price allocation of Staci.
Notes to the Condensed Consolidated Financial Statements
1. Basis for preparation and accounting policies
The condensed consolidated financial statements of bpostgroup have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted for use by the European Union. The condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with bpostgroup's annual consolidated financial statements as at December 31, 2023.
bpostgroup has prepared the financial statements on the basis that it will continue to operate as a going concern as there are no material uncertainties and there are sufficient resources to continue operations.
The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of bpostgroup's annual consolidated financial statements for the year ended December 31, 2023. There are no IFRS standards, amendments or interpretations taking effect for the first time for the financial year beginning 1 January 2024 that have a material impact on the 2024 accounts of bpostgroup.
2. Compliance reviews
This financial report should be read in conjunction with bpostgroup's annual financial statements of December 31, 2023. More specifically we refer to the notes 6.27 related to provisions (amongst other the compliance reviews related to the processing of traffic fines, the management of 679 accounts and the delivery/cancellation of license plates) as well as the note 6.30 contingent liabilities and contingent assets (amongst other the compliance review regarding the public tender of the Belgian State for the distribution of recognized newspapers and periodicals in Belgium) in bpostgroup's annual financial statements as of December 31, 2023. The referred notes above are materially unchanged from those described in bpostgroup's annual financial statements as of December 31, 2023 with exception of the evolution described below.
For the 679 accounts in the meanwhile the tender process has been finalised, leading to the selection of another supplier than bpost which will take-over the provision of these services but this does not change the provisions as described in note 6.27 in bpostgroup's annual financial statements as of December 31, 2023.
For the press concession the audit on the compensation is still ongoing but this does not change the impact analysis as described in note 6.30 in bpostgroup's annual financial statements as of December 31, 2023. Furthermore, the State aid related to the last extension(s) of the press concession (covering 2023 and the first half of 2024) has been unconditionally approved by the European Commission on May 24, 2024, which does not change the provisions as described in note 6.30 in bpostgroup's annual financial statements as of December 31, 2023.
3. Events after the reporting period
No significant evens impacting bpostgroup's financial position have been observed after the statement of financial position date.
Alternative Performance Measures (unaudited)
bpostgroup also analyses the performance of its activities in addition to the reported IFRS figures with alternative performance measures ("APMs"). The definitions of these alternative performance measures can be found below.
Alternative performance measures (or non-GAAP measures) are presented to enhance an investor's understanding of the operating and financial performance, to aid in forecasting and to facilitate meaningful comparison of the result between periods.
The presentation of alternative performance measures is not in conformity with IFRS and the APMs are not audited. The APMs may not be comparable to the APMs reported by other companies as those companies may compute their APMs differently from bpostgroup.
The calculation of the adjusted performance measure and adjusted operating free cash flow can be found below the definitions. The APMs derived from items reported in the financial statements can be calculated with and reconciled directly to the items as disclosed in the definitions below.
Definitions:
Adjusted performance (adjusted operating income/adjusted EBITDA/adjusted EBIT/adjusted EAT): bpostgroup defines the adjusted performance as operating income/EBITDA/EBIT/EAT excluding the adjusting items. Adjusting items represent significant income or expense items that due to their non-recurring character are excluded from performance analyses. bpostgroup uses a consistent approach when determining if an income or expense item is adjusting and if it is significant enough to be excluded from the reported figures to obtain the adjusted ones. An adjusting item is deemed to be significant if it amounts to 20.0 mEUR or more. All profits or losses on disposal of activities are adjusted whatever the amount they represent, as well as the year-to-date amortization and impairment on the intangible assets recognized throughout the Purchase Price Allocation (PPA) of the acquisitions. Reversals of provisions whose addition had been adjusted are also adjusted whatever the amount they represent. The reconciliation of the adjusted performance is available below the definitions.
bpostgroup's management believes this measure provides the investor a better insight and comparability over time of the economic performance of bpostgroup.
Constant exchange rate: bpostgroup excludes in the performance at constant exchange rate the impact of the different exchange rates applied in different periods. The reported figures in local currency of the prior comparable period are converted with the exchange rates applied for the current reported period.
bpostgroup's management believes that the performance at constant exchange rate provides the investor an understanding of the operating performance.
Capex: capital expenditure for tangible and intangible assets including capitalised development costs, excluding right of use assets.
Earnings Before Interests, Taxes, Depreciation and Amortization (EBITDA): bpostgroup defines EBITDA as earnings from operating activities (EBIT) plus depreciations and amortizations and is derived from the consolidated income statement.
Net debt/(Net cash): bpostgroup defines Net debt/(Net cash) as the non-current and current interest-bearing loans and borrowings (incl. lease liabilities) plus bank overdrafts minus cash and cash equivalents and is derived from the consolidated statement of financial position.
Operating free cash flow (FCF) and adjusted Operating free cash flow: bpostgroup defines FCF as the sum of net cash from operating activities and net cash used in investing activities and is derived from the consolidated statement of cash flows. Adjusted operating free cash flow is the operating free cash flow as defined excluding working capital impact of "the collected proceeds due to clients". The reconciliation is available below the definitions. In some cases, Radial performs the billing and receiving of payments on behalf of their customers. Under this arrangement, Radial routinely remits billed amounts back to the client, and performs periodical settlements with the client on amounts owed to or from Radial based on billings, fees, and amounts previously remitted. Adjusted operating free cash flows excludes the cash Radial received on behalf of their customers as Radial has no or little impact on the amount or the timing of these payments.
Evolution Parcels volume: bpostgroup defines the evolution of Parcels as the difference, expressed as a percentage, of the reported volumes between the current and prior comparable period of the parcels processed by bpost SA/NV in the last mile delivery.
Underlying mail volume (Transactional mail, Advertising mail and Press): bpostgroup defines underlying mail volume as the reported mail volume including some corrections.
Reconciliation of reported to adjusted financial metrics
OPERATING INCOME
| Year-to-date | 4 th quarter |
|||||
|---|---|---|---|---|---|---|
| In million EUR | 2023 | 2024 | % Δ | 2023 | 2024 | % Δ |
| Total operating income | 4,272.2 | 4,341.3 | 1.6% | 1,217.2 | 1,335.0 | 9.7% |
| ADJUSTED TOTAL OPERATING INCOME | 4,272.2 | 4,341.3 | 1.6% | 1,217.2 | 1,335.0 | 9.7% |
OPERATING EXPENSES
| Year-to-date | 4 th quarter |
|||||
|---|---|---|---|---|---|---|
| In million EUR | 2023 | 2024 | % Δ | 2023 | 2024 | % Δ |
| Total operating expenses excluding depreciation and amortization |
(3,794.4) | (3,807.2) | 0.3% | (1,063.6) | (1,154.0) | 8.5% |
| Merger & acquisitions costs (1) | 0.0 | 20.9 | - | 0.0 | (1.9) | - |
| Provisions related to overcompensation (2) | 75.0 | 0.0 | - | 0.0 | 0.0 | - |
| ADJUSTED TOTAL OPERATING EXPENSES EXCLUDING DEPRECIATION, AMORTIZATION |
(3,719.4) | (3,786.4) | 1.8% | (1,063.6) | (1,155.9) | 8.7% |
EBITDA
| Year-to-date | 4 th quarter |
|||||
|---|---|---|---|---|---|---|
| In million EUR | 2023 | 2024 | % Δ | 2023 | 2024 | % Δ |
| EBITDA | 477.8 | 534.1 | 11.8% | 153.6 | 181.0 | 17.8% |
| Merger & acquisitions costs (1) | 0.0 | 20.9 | - | 0.0 | (1.9) | - |
| Provision related to overcompensation (2) | 75.0 | 0.0 | - | 0.0 | 0.0 | - |
| ADJUSTED EBITDA | 552.8 | 554.9 | 0.4% | 153.6 | 179.1 | 16.6% |
EBIT
| Year-to-date | 4 th quarter |
||||||
|---|---|---|---|---|---|---|---|
| In million EUR | 2023 | 2024 | % Δ | 2023 | 2024 | % Δ | |
| Result from operating activities (EBIT) | 160.8 | (118.1) | - | 70.9 | (222.9) | - | |
| Merger & acquisitions costs (1) | 0.0 | 20.9 | - | 0.0 | (1.9) | - | |
| Provision related to overcompensation (2) | 75.0 | 0.0 | - | 0.0 | 0.0 | - | |
| Non-cash impact of purchase price allocation (PPA) (3) |
12.7 | 22.7 | 79.0% | 3.2 | 9.4 | 197.3% | |
| Impairment on goodwill (4) | 0.0 | 299.4 | - | 0.0 | 299.4 | - | |
| ADJUSTED RESULT FROM OPERATING ACTIVITIES (EBIT) |
248.5 | 224.9 | -9.5% | 74.1 | 84.0 | 13.4% |
RESULT FOR THE PERIOD (EAT)
| Year-to-date | th 4 quarter |
|||||
|---|---|---|---|---|---|---|
| In million EUR | 2023 | 2024 | % Δ | 2023 | 2024 | % Δ |
| Result of the period | 64.8 | (209.2) | - | 32.4 | (257.5) | - |
| Merger & acquisitions costs (1) | 0.0 | 16.9 | - | 0.0 | (1.4) | - |
| Non-cash impact of purchase price allocation (PPA) (3) |
9.3 | 15.6 | 67.6% | 2.1 | 7.0 | 226.2% |
| Provision related to overcompensation (2) | 73.8 | 0.0 | - | 0.0 | 0.0 | - |
| Impairment on goodwill (4) | 0.0 | 299.4 | - | 0.0 | 299.4 | |
| ADJUSTED RESULT OF THE PERIOD | 147.9 | 122.7 | -17.1% | 34.6 | 47.5 | 37.4% |
(1) As merger and acquisitions costs exceed the threshold of 20.0 mEUR, in line with the definition of adjusting items within the APMs the 2024 merger and acquisition costs are being adjusted.
- (2) In 2023 bpost had voluntary launched 3 compliance reviews concerning the processing of traffic fines, the management of 679 accounts, and the delivery/cancellation of licence plates and concluded an in-dept legal and economic assessment regarding the remuneration paid by the Belgian State for these 3 services. As part of bpost's commitment to repay any overcompensation, a provision of 75.0 mEUR had been recorded. The provision, as is customary concerning the repayment of State Aid, was already net of corporate income taxes paid on the incompatible aid principal amount. As a result, the amount except for the compound interest was not tax deductible. In line with the definition of adjusting items within the APMs and as this provision exceeds the threshold of 20.0 mEUR, this provision was being adjusted.
- (3) In accordance with IFRS 3 and throughout the purchase price allocation (PPA) for several entities, bpostgroup recognized several intangible assets (brand names, know-how, customer relationships…). The non-cash impact consisting of amortization charges on these intangible assets is being adjusted.
- (4) In accordance with IAS 36 and the CGU (cash generating units) impairment testing, goodwill impairments were recognized within 3PL as an impairment loss of 313.5 mUSD was recognized for Radial North America. This in the context of material recent client churn at Radial US, combined with a continued challenging market environment and related materializing downside risks tied to the long term plan. The reassessment results in a value in use landing significantly below the carrying value, ultimately yielding an CGU impairment of 313.5 mUSD and a statutory impairment of the participation of 370.6 mUSD within the books of bpost NV/SA.
Reconciliation of reported free cash flow and adjusted free cash flow
| Year-to-date | th 4 quarter |
||||||
|---|---|---|---|---|---|---|---|
| In million EUR | 2023 | 2024 | % Δ | 2023 | 2024 | % Δ | |
| Net Cash from operating activities | 376.2 | 534.9 | 42.2% | 160.3 | 283.2 | 76.7% | |
| Net Cash used in investing activities |
(152.4) | (1,422.0) | - | (49.8) | (62.6) | 25.6% | |
| FREE CASH FLOW | 223.8 | (887.1) | - | 110.4 | 220.6 | 99.7% | |
| Collected proceeds due to Radial's clients |
(3.2) | 11.7 | - | (34.5) | (27.4) | -20.6% | |
| ADJUSTED FREE CASH FLOW | 220.7 | (875.3) | - | 75.9 | 193.2 | - |
Forward Looking Statements
The information in this document may include forward-looking statements4 , which are based on current expectations and projections of management about future events. By their nature, forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other factors because they relate to events and depend on circumstances that will occur in the future whether or not outside the control of the Company. Such factors may cause actual results, performance or developments to differ materially from those expressed or implied by such forward-looking statements. Accordingly, no assurance is given that such forward-looking statements will prove to have been correct. They speak only as at the date of the Presentation and the Company undertakes no obligation to update these forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.
4 As defined among others under the U.S. Private Securities Litigation Reform Act of 1995
Glossary
- • CGU: Cash Generating Unit
- Capex: Total amount invested in tangible and intangible assets
- Opex: Operating expenses
- Constant Exchange Rate: The reported figures in local currency of the prior comparable period are converted with the exchange rates applied for the current reported period
- D&A: Depreciation and amortization
- EAT: Earnings After Taxes
- EBIT: Earnings Before Interests and Taxes
- EBITDA: Earnings Before Interests, Taxes, Depreciation and Amortization
- Effective tax rate: Income tax expense/profit before tax
- SGEI: Services of General Economic Interest