bpost (BPOST) Q3 2024 earnings summary

Executive summary

• Q3 2024 results aligned with plan, showing seasonal softness and EBIT decline due to new Press contracts and North American headwinds, partially offset by Staci's contribution from August.

• Group operating income for Q3 2024 was €1,025 billion, up 4.7% year-over-year, with €123.5 million from Staci.

• Adjusted EBIT was €10.3 million (1% margin), down year-over-year, mainly due to lower press revenue and North America pressures; reported EBIT at -€0.9 million, impacted by €8 million in M&A costs.

• Adjusted net profit fell to -€13.9 million, reflecting higher interest costs and FX impacts.

• Results remain broadly in line with the plan and previous guidance, allowing reaffirmation of the 2024 EBIT outlook.

Financial highlights

• Domestic mail revenue declined less than 2% year-over-year, supported by election mail campaigns.

• Domestic parcel revenue grew by 8.7% year-over-year, with strong demand from major platforms.

• 3PL revenues increased by €82 million, but declined 15% excluding Staci; 3PL Europe net sales up 14%, while North America revenue fell 18%.

• Cross-border Europe revenues rose 6%, but North America declined 15% due to customer down trading and Amazon insourcing.

• Free cash flow was impacted by the €1.3 billion Staci acquisition and €43 million in capex; net debt increased to €1,960.1 million.

Outlook and guidance

• 2024 adjusted group EBIT outlook reaffirmed at €205–230 million, with segment assumptions unchanged from July.

• Capex guidance maintained at €115 million, with gross capex for 2024 expected around €150 million.

• Staci expected to deliver a 10–11% EBIT margin for 2024, despite Q3 seasonality.

• Last Mile: slightly lower income, 5–7% adjusted EBIT margin, continued mail volume decline, strong parcel growth.

• 3PL: high single-digit % income growth, 2–4% EBIT margin, Staci consolidation, Radial US volume loss.