Earnings Release • May 8, 2017
Earnings Release
Open in ViewerOpens in native device viewer
• Onderliggend cash bedrijfsresultaat 2017 van tussen €220 miljoen en €260 miljoen
| in € miljoenen, tenzij anders aangegeven | 1e kw. 2017 1e kw. 2016 % Change | ||
|---|---|---|---|
| Omzet | 870 | 864 | 1% |
| Bedrijfsresultaat | 66 | 70 | -6% |
| Onderliggend bedrijfsresultaat | 68 | 79 | -14% |
| Onderliggende operationele marge | 7,8% | 9,1% | |
| Wijzigingen in pensioenverplichtingen | (3) | (5) | 40% |
| Wijzigingen in voorzieningen | (15) | (13) | -15% |
| Onderliggend cash bedrijfsresultaat | 50 | 61 | -18% |
| Onderliggende cash operationele marge | 5,7% | 7,1% | |
| Periodewinst | 41 | 39 | 5% |
| Nettokasstroom uit operationele en investeringsactiviteiten | (20) | (26) | 23% |
Noot: onderliggende cijfers zijn exclusief one-offs in Q1 2017 (€2 miljoen voor projectkosten) en in Q1 2016 (€7 miljoen voor reorganisaties en €2 miljoen projectkosten)
Herna Verhagen, CEO van PostNL: '' We hebben eerder aangegeven dat onze resultaten in het eerste kwartaal lager zouden zijn dan de resultaten van het vorig jaar. De gerealiseerde resultaten waren in lijn met deze verwachtingen, geholpen door enkele incidentele effecten. We bevestigen onze outlook 2017 voor het realiseren van een onderliggend cash bedrijfsresultaat van tussen de €220 miljoen en €260 miljoen.
Met de goedkeuring van ons dividendvoorstel door de aandeelhouders is een belangrijke mijlpaal bereikt. Op 11 mei gaat PostNL weer dividend betalen, waarmee we onze eerdere belofte nakomen. Voor de toekomst verwachten we onze aandeelhouders met een progressief dividend te kunnen belonen. We zetten de transformatie van onze organisatie naar een logistiek bedrijf voor e-commerce verder door. Zo werken we onder meer aan het verder vergroten van onze footprint op het gebied van foodbezorging. Onze ambitie is om de aanbieder van e-food logistieke diensten te worden in de Benelux.
Pakketten laat onderliggende volumegroei zien van 15%. De sterke e-commerce groei zet door. Ook de omzet van onze logistieke diensten groeide, evenals de vraag naar aanvullende diensten, zoals bezorging op dezelfde dag. Het resultaat was solide.
Bij Mail in Nederland zet de volumedaling door, voornamelijk vanwege substitutie. We zien echter ook dat postvervoerders meer post via hun eigen netwerken bezorgen als gevolg van maatregelen van ACM. Het lagere resultaat is hoofdzakelijk toe te schrijven aan de volumedaling. Onze besparingsplannen verlopen volgens plan. De lopende regelgevingsdossiers blijven veel managementaandacht vragen. We zijn nog steeds bezorgd over de verwachte negatieve impact van de mogelijke uitkomst van diverse maatregelen met betrekking tot aanmerkelijke marktmacht.
Het resultaat van Internationaal verbeterde in het eerste kwartaal en laat een gemengd beeld zien. De positieve bijdrage van de overname vorig jaar in Duitsland en de eerste tekenen van het verwachte herstel in Italië werden deels teniet gedaan door een enigszins lagere omzet dan verwacht bij Spring en lagere volumes en omzet bij de overige Duitse activiteiten."
| 0 | Revenue | Underlying operating income |
Underlying cash operating income |
|||
|---|---|---|---|---|---|---|
| in € million | Q1 2017 | Q1 2016 | Q1 2017 | Q1 2016 | Q1 2017 | Q1 2016 |
| Mail in the Netherlands | 450 | 472 | 41 | 51 | 28 | 38 |
| Parcels | 249 | 234 | 28 | 29 | 28 | 28 |
| International | 285 | 266 | 6 | 3 | 5 | 3 |
| PostNL Other | 18 | 44 | (7) | (4) | (11) | (8) |
| Intercompany | (132) | (152) | - | - | - | - |
| PostNL | 870 | 864 | 68 | 79 | 50 | 61 |
Note: underlying figures exclude one-offs
Addressed mail volumes in Mail in the Netherlands declined by 9.6% in the quarter (adjusted for working days: 10.3%). The main driver for the decline is ongoing high substitution, especially in single mail. The development in bulk mail includes some negative phasing effects. Our bulk mail volumes were also impacted by a change in market behaviour of consolidators, who are now delivering more volume via their own networks, supported by the ACM measures.
Revenue declined by 5% to €450 million. Underlying cash operating income was €28 million (Q1 2016: €38 million). Cost savings and incidentals (for example bilaterals) have partly offset the negative volume/price/mix effect and autonomous cost increases. The earlier announced ACM measures continue to affect our results in line with expectations.
We remain concerned about the expected adverse effects related to the possible outcome of significant market power (SMP) and related measures. The Ministry of Economic Affairs published a policy guideline concerning the interpretation of SMP in December 2016. The ACM published a new draft decision on SMP on 6 April 2017. PostNL will submit its view on the consultation document in due course.
Indicated in October 2015, we expect the financial impact of the ACM measures to be between €30 million and €50 million annualised, with the full effect expected to materialise over a 3 to 4 year period (2016-2019).
| Q1 2017 | ||
|---|---|---|
| Efficiency delivery process | • | 5 depots migrated |
| Optimise retail network | • | Reduction of 50 postal offices and 500 letter boxes |
| Efficiency sorting process | • | Roll-out of the last four machines; equip all machines with improved label-unit |
Reported volume growth was 8%. Adjusted for internal transfers of part of the international volumes, volume growth amounted to 15%. Our domestic 2B and 2C volumes, including Belgium, showed strong growth, following the ongoing positive e-commerce trend.
Revenue increased by 6% to €249 million. Adjusted for internal transfers, growth was 9%. The main driver for revenue growth was domestic volume growth. We benefited from increasing demand for additional services and revenue growth in logistics. This was partly offset by lower revenue from milk powder volumes and a slightly negative price/mix effect. The solid business performance was offset by internal transfers and phasing of costs. Underlying cash operating income amounted to €28 million (Q1 2016: €28 million).
International revenue increased by 7% to €285 million. On a like-for-like basis, adjusted for FX (€(1) million), internal transfers (€(5) million) and an adjustment in the presentation of intercompany charges (€7 million), revenue increased by 8%. Underlying cash operating income improved to €5 million (Q1 2016: €3 million).
In Germany, revenue increased by 12% to €154 million (Q1 2016: €137 million). The acquisition of Pin Mail Berlin and Mail Alliance accounted for €25 million of the revenue growth and contributed directly to the result. Other activities in Germany showed lower revenue, driven by volume decline.
In Italy the expected recovery started to become more tangible. Revenue was up 9% to €62 million (Q1 2016: €57 million), explained in part by the start of some new clients and strong growth from parcels. Our focus is on improving operational quality and acquiring new clients.
Revenue in Spring and other declined by 4% to €69 million. Revenue was impacted by stricter rules for dangerous goods. We expect that Spring will further grow its revenue by capturing growth from e-commerce. We recently announced that Chinese AliExpress, part of the Alibaba Group, selected PostNL for the delivery of part of its packages to the Netherlands.
Revenue in PostNL Other was €18 million (Q1 2016: €44 million), mainly explained by lower internal revenue due to an adjustment in the presentation of intercompany charges. Underlying cash operating income decreased to €(11) million (Q1 2016: €(8) million) due to higher advisory costs.
Pension expense in Q1 2017 amounted to €27 million (Q1 2016: €25 million) and total cash contributions were €30 million (Q1 2016: €30 million). In Q1 2017, the net actuarial gain on pensions amounted to €3 million. At the end of Q1 2017, the main pension fund's 12 months average coverage ratio was 106.0%, above the minimum required funding level of 104.0%. A 5-year recovery period, in which top-up payments may apply, started in Q3 2016 but will end after three consecutive quarters where the coverage ratio is above the minimum required level. Based on our projections we do not anticipate top-up payments. On 31 March 2017, the main pension fund's actual coverage ratio was 111.4% (YE 2016: 108.3%).
Total equity attributable to equity holders of the parent improved to €(32) million as per 1 April 2017 from €(79) million as per 31 December 2016. The improvement is explained by net profit of €41 million, a net actuarial gain on pensions of €3 million and other gains of €3 million. Net cash from operating and investing activities was €(20) million, supported by a favourable development in working capital. At the end of Q1 2017, the net cash position was €68 million, which compares to €86 million at the end of 2016.
| Q1 | Q2 | Q3 | Q4 | Total | |
|---|---|---|---|---|---|
| 2016 | 64 | 62 | 65 | 64 | 255 |
| 2017 | 65 | 61 | 65 | 63 | 254 |
| 11 May 2017 | Dividend payment |
|---|---|
| 7 August 2017 | Publication of Q2 & HY 2017 results |
| 6 November 2017 | Publication of Q3 2017 results |
| 26 February 2018 | Publication of Q4 & FY 2017 results |
| 7 May 2018 | Publication of Q1 2018 results |
| 6 August 2018 | Publication of Q2 & HY 2018 results |
| 5 November 2018 | Publication of Q3 2018 results |
| Published by | PostNL N.V. Prinses Beatrixlaan 23 2595 AK The Hague The Netherlands T: +31 88 86 86 161 |
|
|---|---|---|
| Investor Relations | Karen Berg Director Treasury & Investor Relations M: +31 653 44 91 99 E: [email protected] |
Inge Steenvoorden Manager Investor Relations M: +31 610 51 96 70 E: [email protected] |
| Media Relations | Jelleke van Rantwijk Spokesperson M: +31 652 01 02 52 E: [email protected] |
Melanie Tseng Spokesperson M: +31 683 38 08 40 E: [email protected] |
On 8 May 2017, at 11.00 CET, the conference call for analysts and investors will start. The conference call can be followed live via an audio webcast on postnl.nl.
Additional information is available at postnl.nl.
Some statements in this press release are 'forward-looking statements'. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that may occur in the future. These forward-looking statements involve known and unknown risks, uncertainties and other factors that are outside of our control and impossible to predict and may cause actual results to differ materially from any future results expressed or implied. These forward-looking statements are based on current expectations, estimates, forecasts, analyses and projections about the industries in which we operate and management's beliefs and assumptions about possible future events. You are cautioned not to put undue reliance on these forward-looking statements, which only speak as of the date of this press release and are neither predictions nor guarantees of possible future events or circumstances. We do not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as may be required under applicable securities law.
In presenting and discussing the PostNL Group operating results, management uses certain non-GAAP financial measures. These non-GAAP financial measures should not be viewed in isolation as alternatives to the equivalent IFRS measures and should be used in conjunction with the most directly comparable IFRS measures. Non-GAAP financial measures do not have standardized meaning under IFRS and therefore may not be comparable to similar measures
presented by other issuers. The main non-GAAP key financial performance indicator is underlying cash operating income. The underlying cash operating performance focuses on the underlying cash earnings performance, which is the basis for the dividend policy. In the analysis of the underlying cash operating performance, adjustments are made for non-recurring and exceptional items as well as adjustments for non-cash costs for pensions and provisions. For pensions, the IFRS-based defined benefit plan pension expenses are replaced by the non-IFRS measure of the actual cash contributions for such plans. For the other provisions, the IFRS-based net charges are replaced by the related cash outflows.
The interim financial statements are reported on a year-to-date basis ending 1 April 2017. The information should be read in conjunction with the consolidated 2016 Annual Report of PostNL N.V. as published on 27 February 2017.
The measure of profit and loss and assets and liabilities is based on the Group Accounting Policies, which are compliant with IFRS as endorsed by the European Union. All significant accounting policies applied in these consolidated interim financial statements are consistent with those applied in PostNL's consolidated 2016 Annual Report for the year ended 31 December 2016.
The content of this interim financial report has not been audited or reviewed by an external auditor.
| Consolidated income statement | ||
|---|---|---|
| in € millions | Q1 2017 | Q1 2016 |
| Net sales | 867 | 862 |
| Other operating revenue | 3 | 2 |
| Total operating revenue | 870 | 864 |
| Other income | 3 | 1 |
| Cost of materials | (17) | (17) |
| Work contracted out and other external expenses | (438) | (429) |
| Salaries, pensions and social security contributions | (293) | (288) |
| Depreciation, amortisation and impairments | (19) | (22) |
| Other operating expenses | (40) | (39) |
| Total operating expenses | (807) | (795) |
| Operating income | 66 | 70 |
| Interest and similar income | 2 | 1 |
| Interest and similar expenses | (12) | (18) |
| Net financial expenses | (10) | (17) |
| Results from investments in jv's/associates | 0 | 1 |
| Profit/(loss) before income taxes | 56 | 54 |
| Income taxes | (15) | (15) |
| Profit for the period | 41 | 39 |
| Attributable to: | ||
| Non-controlling interests | - | - |
| Equity holders of the parent | 4 1 |
3 9 |
| Earnings per ordinary share (in € cents) 1 | 9.3 | 8.8 |
| Earnings per diluted ordinary share (in € cents) 2 | 9.2 | 8.8 |
1 Based on an average of 442,805,079 outstanding ordinary shares (2016: 441,570,664).
2 Based on an average of 443,689,924 outstanding diluted ordinary shares (2016: 442,753,289).
| in € millions | Q1 2017 | Q1 2016 |
|---|---|---|
| Profit for the period Other comprehensive income that will not be reclassified to the income statement |
41 | 39 |
| Impact pensions, net of tax Other comprehensive income that may be reclassified to the income statement |
3 | (19) |
| Currency translation adjustment, net of tax | 0 | (1) |
| Gains/(losses) on cashflow hedges, net of tax | 2 | 1 |
| Change in value of available-for-sale financial assets | - | 8 |
| Total other comprehensive income for the period | 5 | (11) |
| Total comprehensive income for the period | 46 | 28 |
| Attributable to: | ||
| Non-controlling interests | - | - |
| Equity holders of the parent | 4 6 |
2 8 |
| Consolidated statement of cash flows | ||
|---|---|---|
| in € millions | Q1 2017 | Q1 2016 |
| Profit/(loss) before income taxes | 56 | 54 |
| Adjustments for: | ||
| Depreciation, amortisation and impairments | 19 | 22 |
| Share-based payments | 1 | 1 |
| (Profit)/loss on assets held for sale | (3) | (1) |
| Interest and similar income | (2) | (1) |
| Interest and similar expenses | 12 | 18 |
| Results from investments in jv's/associates | - | (1) |
| Investment income | 7 | 15 |
| Pension liabilities | (3) | (5) |
| Other provisions | (12) | (9) |
| Changes in provisions | (15) | (14) |
| Inventory | 1 | - |
| Trade accounts receivable | 39 | (9) |
| Other accounts receivable | (22) | 4 |
| Other current assets | (31) | (10) |
| Trade accounts payable | (19) | (19) |
| Other current liabilities excluding short-term financing and taxes | 23 | 5 |
| Changes in working capital | (9) | (29) |
| Cash generated from operations | 59 | 49 |
| Interest paid | (1) | (1) |
| Income taxes received/(paid) | (60) | (65) |
| Net cash (used in)/from operating activities | (2) | (17) |
| Interest received | 1 | 1 |
| Capital expenditure on intangible assets | (8) | (5) |
| Capital expenditure on property, plant and equipment | (15) | (8) |
| Proceeds from sale of property, plant and equipment | 4 | 3 |
| Net cash (used in)/from investing activities | (18) | (9) |
| Net cash (used in)/from financing activities | 0 | 0 |
| Total change in cash from continuing operations | (20) | (26) |
| Cash at the beginning of the period Total change in cash from continuing operations |
640 (20) |
355 (26) |
| Cash at the end of the period | 620 | 329 |
| Consolidated statement of financial position | ||
|---|---|---|
| in € millions | 1 April 2017 | 31 December 2016 |
| ASSETS | ||
| Non-current assets | ||
| Intangible assets | ||
| Goodwill | 133 | 134 |
| Other intangible assets | 7 2 |
6 7 |
| Total | 205 | 201 |
| Property, plant and equipment | ||
| Land and buildings | 315 | 321 |
| Plant and equipment | 143 | 142 |
| Other | 2 0 |
1 9 |
| Construction in progress | 2 4 |
2 3 |
| Total | 502 | 505 |
| Financial fixed assets | ||
| Investments in joint ventures/associates | 1 7 |
1 7 |
| Other financial fixed assets | 1 | 1 |
| Deferred tax assets | 3 7 |
3 8 |
| Available-for-sale financial assets | 1 | 1 |
| Total | 56 | 57 |
| Total non-current assets | 763 | 763 |
| Current assets | ||
| Inventory | 5 | 5 |
| Trade accounts receivable | 318 | 357 |
| Accounts receivable | 5 3 |
3 1 |
| Income tax receivable | 5 1 |
2 |
| Prepayments and accrued income | 164 | 134 |
| Cash and cash equivalents | 620 | 640 |
| Total current assets | 1,211 | 1,169 |
| Assets classified as held for sale | 5 | 4 |
| Total assets | 1,979 | 1,936 |
| LIABILITIES AND EQUITY | ||
| Equity | ||
| Equity attributable to the equity holders of the parent | (32) | (79) |
| Non-controlling interests | 3 | 3 |
| Total | (29) | (76) |
| Non-current liabilities | ||
| Deferred tax liabilities | 3 6 |
3 5 |
| Provisions for pension liabilities | 406 | 410 |
| Other provisions | 3 1 |
3 9 |
| Long-term debt | 225 | 227 |
| Total | 698 | 711 |
| Current liabilities | ||
| Trade accounts payable | 169 | 188 |
| Other provisions | 3 9 |
4 4 |
| Short-term debt | 328 | 328 |
| Other current liabilities | 157 | 141 |
| Income tax payable | 1 1 |
8 |
| Accrued current liabilities | 606 | 592 |
| Total | 1,310 | 1,301 |
| Total equity and liabilities | 1,979 | 1,936 |
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.