PostNL (PNL) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose 3% year-over-year to €795 million, with parcel volumes up 6% (driven by 29–30% international growth and 0.3% domestic), while mail volumes declined 1.3% (adjusted: -5.9% excluding election mail).

• Organic cost increases of €38 million in Q2 were largely mitigated by yield and efficiency measures; free cash flow improved to €(19) million from €(34) million in Q2 2023.

• Carbon efficiency improved by 17% year-to-date; €300 million sustainability-linked notes were issued.

• PostNL Belgium was acquitted in a legal case, removing contingent liabilities and legal uncertainties.

• Interim dividend of €0.03 per share to be paid in August 2024.

Financial highlights

• Q2 2024 revenue: €795 million (Q2 2023: €771 million); HY 2024: €1,560 million (HY 2023: €1,554 million).

• Q2 2024 normalised EBIT: €18 million (Q2 2023: €18 million); HY 2024: €9 million (HY 2023: €25 million).

• Q2 2024 free cash flow: €(19) million (Q2 2023: €(34) million); HY 2024: €(26) million (HY 2023: €(65) million).

• Adjusted net debt increased to €514 million at 30 June 2024, mainly due to bond issuance and WGA provision.

• Interim dividend set at €0.03 per share.

Outlook and guidance

• FY 2024 normalised EBIT expected at €80–110 million; free cash flow €0–40 million; normalised comprehensive income €40–70 million.

• Parcel volume growth for 2024 projected at 7–10%, with international outpacing domestic (international double-digit, domestic 2–4%).

• Mail volumes expected to decline 7–9% for the year; cost savings targets of €35–40 million in mail and €35 million in parcels reaffirmed.

• Organic cost increases for 2024 estimated at €155 million, mitigated by €135 million in yield management.

• Capex for 2024 expected at €110 million.