Poste Italiane (PST) Q2 2024 earnings summary

Executive summary

• H1 2024 revenues reached €6.2bn, up 7.3% year-over-year on an underlying basis, with Q2 revenues at €3.1bn, driven by strong Mail & Parcel, NII, and Payments performance.

• Adjusted EBIT for H1 2024 was €1.5bn, up 14.2% year-over-year underlying, and net profit exceeded €1.0bn, with Q2 net profit at €525m.

• New collective labor agreement signed for 2024-2027, enabling logistics transformation, cost base visibility, and compensation increases.

• Upgraded full-year 2024 adjusted EBIT guidance to €2.8bn, reflecting strong H1 and Q2 results, outperformance in Mail & Parcel, NII, and improved HR cost visibility.

• Cost discipline offset inflation, supporting profitability growth and business plan execution.

Financial highlights

• H1 2024 revenue reached €6.2bn, up 3% year-over-year reported and 7.3% underlying; Q2 at €3.1bn, up 8.7% underlying.

• Adjusted EBIT in H1 at €1.5bn, up 14.2% underlying; adjusted net profit over €1bn, also up 14% underlying.

• Positive net flows in investment products, record mutual fund inflows, and resilient insurance business.

• Strong cash generation, ample liquidity (€5.4bn), and balanced debt profile with €12bn shareholders' equity.

• Group client Total Financial Assets (TFAs) reached €589bn, up €8bn from December 2023.

Outlook and guidance

• 2024 adjusted EBIT guidance raised to €2.8bn, supported by strong H1 results and increased cost base visibility.

• New dividend policy based on a minimum 65% payout ratio, directly linked to financial results.

• Strategic plan focuses on platform business model, logistics transformation, and integrated service offering.

• Continued focus on cost discipline, business plan execution, and sustainability initiatives.

• Labour contract renewal ensures sustainable HR cost evolution and supports transformation.