Poste Italiane (PST) Q2 2024 earnings summary

Executive summary

• Signed a new collective labor contract covering 2024-2027, enabling logistics transformation, cost base visibility, and future-proofing networks, with compensation increases and lump sum payments.

• H1 2024 revenues reached €6.2bn, up 7.3% year-over-year underlying, 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 €1bn.

• Upgraded 2024 adjusted EBIT guidance to €2.8bn, reflecting strong H1 performance, operational efficiencies, and improved HR cost visibility.

• Achieved record net inflows in mutual funds and maintained resilience in insurance and postal savings.

Financial highlights

• H1 2024 group revenues at €6.2bn, up 7.3% year-over-year underlying; Q2 at €3.1bn, up 8.7% year-over-year underlying.

• H1 2024 adjusted EBIT at €1.5bn, up 14.2% year-over-year underlying; net profit at €1.0bn, up 14.3% year-over-year underlying.

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

• 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.

• 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.

• Expecting full-year CSM release between 8% and 9%, with normalized growth around 5%.

• NII guidance for 2024 raised to €2.4bn, with no incremental capital gains planned.