EQS-News: AUSTRIAN POST’S 2021 FINANCIAL YEAR
EQS-News: Österreichische Post AG / Key word(s): Annual Results
AUSTRIAN POST’S 2021 FINANCIAL YEAR
11.03.2022 / 07:30
The issuer is solely responsible for the content of this announcement.
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AUSTRIAN POST’S 2021 FINANCIAL YEAR:
Improved 2021 revenue and earnings; parcel exceeds mail business
Cautious outlook, difficult start into 2022
Parcel volume growth, Letter and Direct Mail decline
– Parcel volumes in Austria +11 %, Turkey +5 %, CEE/SEE +16 % in 2021
– Letter mail volumes -4 %, direct mail items -1 % in 2021
2021 revenue increase of 14.9 % to EUR 2,519.6m (+5.7 % organic)
– Mail +0.1 % to EUR 1,224.2m
– Parcel & Logistics +36.4 % to EUR 1,245.7m (+14.2 % organic)
– Retail & Bank +10.8 % to EUR 74.7m
Earnings
– EBITDA +22.3 % to EUR 370.4m
– EBIT +27.5 % to EUR 204.7m
– Mail: -5.6 % to EUR 155.2m
– Parcel & Logistics: +60.6 % to EUR 118.1m
– Retail & Bank: +10.4 % to minus EUR 39.2m
– Earnings per share +28.7 % to EUR 2.25
Cash flow and balance sheet
– Operating free cash flow of EUR 217.9m
– Balance sheet total now at EUR 4.8bn (+78.8 %) due to bank99
Outlook for 2022
– Difficult outlook in a challenging market environment (acts of war in
the Ukraine fuels inflation and subdued consumer behaviour in many
markets)
– Start 2022: First half-year with economic headwinds
– Aiming for as stable as possible in revenue and earnings as close as
possible to 2021 level
The year 2021 was very successful for Austrian Post. The business
environment in the national and international mail and parcel business
consistently improved following a difficult pandemic-driven 2020. „We
managed to ensure the safety of our staff and safeguard our logistics
performance as well as increased the profitability of our company“, says
CEO Georg Pölzl.
Group revenue rose by 14.9 % in 2021, of which 5.7 % is attributable to
organic growth and the remainder to the full consolidation of the Turkish
subsidiary Aras Kargo. Following strong pandemic-driven momentum in the
parcel business during the first three quarters there was a consolidation
in the fourth quarter. Fourth quarter 2021 parcel revenue was up by 0.9 %
from the previous period. The basic trends impacting current business
activities were also visible in 2021 i.e., declining letter mail and
direct mail volumes accompanied by a simultaneous increase in parcel
volumes also triggered by lockdown-related closures of retail stores. The
Group’s divisional revenue distribution has changed significantly in 2021:
The Parcel & Logistics Division generated the largest share of the Group’s
revenue at 49.0 % followed by 48.1 % generated by the Mail Division and
2.9 % by the Retail & Bank Division. Revenue of the Parcel & Logistics
Division climbed by 36.4 % to EUR 1,245.7m, implying organic growth of
14.2 %. This development can be mainly attributed to the Turkish
subsidiary Aras Karo as well as to strong business in Austria and in
Southeast and Eastern Europe. The Mail Division generated revenue of EUR
1,224.2m (+0.1 %) and was impacted by declining letter mail volumes and an
ongoing difficult market environment for direct mail and media post due to
various lockdown measures imposed on the retail market. Revenue of the
Retail & Bank Division improved by 10.8 % to EUR 74.7m in the 2021
financial year. In addition to the positive development of its customer
ramp-up efforts, the subsidiary bank99 also acquired the retail business
of ING in Austria at the end of 2021, thus enabling it to extend its
existing offering by adding its own loan and investment products.
Earnings also reflected the improved revenue situation. EBITDA increased
to EUR 370.4m (+22.3 %) and earnings before interest and tax (EBIT) rose
by 27.5 % to EUR 204.7m. The Mail Division reported an EBIT decline of 5.6
% to EUR 155.2m. In contrast, EBIT of the Parcel & Logistics Division
increased from EUR 73.5m to EUR 118.1m (+60.6 %) and the Retail & Bank
Division improved its earnings performance to minus EUR 39.2m compared to
minus EUR 43.8m in the previous year. Austrian Post’s profit for the
period amounted to EUR 158.4m compared to the prior-year level of EUR
115.3m. Earnings per share in the 2021 financial year equalled EUR 2.25.
Based on good results, an attractive dividend of EUR 1.90 per share will
once again be proposed to the Annual General Meeting scheduled for 21
April 2022.
From today’s perspective, a challenging environment is anticipated in the
2022 financial year as well as the non-recurrence of positive
pandemic-related one-off effects. Delays in the global value chain and
rising inflation already took place in 2021 alongside pressure on the
Turkish lira. The current political events pose major challenges to the
European population and companies. „We are deeply saddened by the war
taking place in Ukraine. Human suffering dwarfs all the other effects,“
says Austrian Post CEO Georg Pölzl.
The direct impacts on the business model of Austrian Post in terms of mail
and parcel flows from the countries involved are relatively minor.
However, indirect effects are, in fact, expected. Inflation based on price
increases for energy and raw materials will intensify and could thus have
adverse effects on consumer behaviour in the future. Furthermore, negative
effects are also expected with respect to the Austrian Post subsidiary
bank99 as a result of payments to be made within the context of bank
deposit insurance in Austria. Due to market headwinds it is not expected
that earnings in the first half of 2021, which were supported by positive
special effects, will be achieved over the same period in 2022. In spite
of this looming negative market environment, Austrian Post aims to keep
revenues as stable as possible and operating earnings (EBIT) once again
close to the prior-year level.
Continuity with regards to the expansion programme for logistics
capacities is also a priority. Austrian Post will continue to invest both
in growth and in the decarbonisation of logistics in 2022. The target is
to strengthen Austrian Post’s top position with respect to quality and
speed as well as to safeguard its pioneering role in the decarbonisation
of logistics.
„Our more than 27,000 employees are the foundation for our success. They
work for the benefit of our customers with high commitments on a daily
basis. Many thanks to them for this. Together we will succeed in
continuing to be the preferred partner of our customers“, CEO Georg Pölzl
concludes.
KEY FIGURES
Change
Q4
EUR m 2020^1 2021 % EUR m 2020^1 Q4 2021
Revenue 2,192.0 2,519.6 14.9 % 327.6 692.5 685.4
Mail 1,222.7 1,224.2 0.1 % 1.5 339.4 330.8
Parcel & Logistics 913.6 1,245.7 36.4 % 332.2 336.9 340.1
Retail & Bank 67.4 74.7 10.8 % 7.3 20.1 22.2
<-100
Corporate/Consolidation -11.7 -25.0 % -13.3 -3.9 -7.7
Other operating income 64.1 95.2 48.5 % 31.1 20.1 35.8
Raw materials, consum. and -20.0
services used -596.2 -715.7 % -119.5 -200.9 -198.8
Expenses for financial -96.4
services -2.8 -5.4 % -2.7 -1.1 -1.7
-11.4
Staff costs -1,041.4 -1,160.1 % -118.7 -295.2 -312.6
-15.7
Other operating expenses -314.4 -363.8 % -49.4 -92.6 -104.5
Results from financial
assets acc. for using the -58.6
equity method 1.5 0.6 % -0.9 0.1 0.4
EBITDA 302.8 370.4 22.3 % 67.6 122.9 104.0
Depreciation, amortisation -16.5
and impairment losses -142.2 -165.6 % -23.5 -43.7 -43.3
EBIT 160.6 204.7 27.5 % 44.1 79.2 60.7
Mail 164.4 155.2 -5.6 % -9.2 57.7 44.4
Parcel & Logistics 73.5 118.1 60.6 % 44.5 40.9 36.7
Retail & Bank -43.8 -39.2 10.4 % 4.6 -6.4 -5.3
Corporate/Consolidation^2 -33.5 -29.3 12.7 % 4.2 -12.9 -15.1
Financial result 1.4 11.7 >100 % 10.2 -2.5 10.1
Profit before tax 162.1 216.4 33.5 % 54.4 76.8 70.8
-24.1
Income tax -46.8 -58.0 % -11.3 -25.9 -22.9
Profit for the period 115.3 158.4 37.4 % 43.1 50.8 47.9
Earnings per share (EUR)^3 1.75 2.25 28.7 % 0.50 0.72 0.69
Gross cash flow 328.3 442.4 34.8 % 114.1 135.9 124.5
Cash flow from operating -32.7
activities 732.6 493.3 % -239.3 214.1 80.6
CAPEX 143.3 161.2 12.5 % 18.0 81.6 67.3
Free cash flow 739.6 748.4 1.2 % 8.8 158.7 378.4
Operating free cash flow^4 125.7 217.9 73.3 % 92.2 31.1 21.5
^1 Adjusted presentation
^2 Includes the intra-Group cost allocation procedure
^3 Undiluted earnings per share in relation to 67,552,638 shares
^4 Free cash flow before acquisitions/securities/money market investments,
Growth CAPEX and core banking assets
EXCERPTS FROM THE MANAGEMENT REPORT 2021
REVENUE DEVELOPMENT IN DETAIL
The Austrian Post Group’s revenue rose by 14.9 % to EUR 2,519.6m in 2021,
with organic revenue growth of 5.7 %. In the 2021 financial year, the
Parcel & Logistics Division achieved revenue growth of 36.4 % (organic
growth of +14.2 %) and the Mail Division showed stability with an increase
of 0.1 %. The Retail & Bank Division also reported a 10.8 % increase in
revenue to EUR 74.7m in the reporting period.
2021 brought a major shift in the divisional breakdown, with the parcel
business now playing more of a role. Revenue in the Parcel & Logistics
Division increased from 41.5 % in 2020 to what is now 49.0 % of total
revenue in the reporting period. On the one hand, the full consolidation
of the Turkish company Aras Kargo with effect from 25 August 2020 brought
revenue growth amounting to EUR 290.7m in the 2021 financial year. On the
other hand, the 36.4 % revenue increase in the Parcel & Logistics Division
in the 2021 financial year was also driven by organic growth from online
orders and positive non-recurring effects from logistics services. The
Mail Division’s share of Austrian Post’s revenue declined to 48.1 % in the
year under review (2020: 55.5 %). Whereas in the previous year – which was
still hit hard by negative COVID-19 effects – revenue dropped by 7.4 %, a
slight increase of 0.1 % was witnessed in the 2021 reporting period. The
current financial year also saw positive COVID-19 effects relating to
special mailings. The overall downward trend in conventional mail as a
result of e-substitution continues to progress, however. The direct mail
business showed volatile development, with signs of a slight recovery in
Direct Mail and Media Post following a marked slump in the previous year.
On 1 April 2020, letter mail products and prices were adjusted, with a
positive knock-on effect on revenue. The Retail & Bank Division achieved a
2.9 % share of revenue in the 2021 financial year with revenue totalling
EUR 74.7m (+10.8 %). bank99 was launched on the market on 1 April 2020.
Revenue in the Mail Division amounted to EUR 1,224.2m in 2021, 63.0 % of
which can be attributed to the Letter Mail & Business Solutions area, 26.9
% to Direct Mail and 10.1 % to Media Post.
At EUR 771.6m, the revenue generated in the Letter Mail & Business
Solutions area in the 2021 financial year fell short of the prior year’s
level by 1.3 %. The declining volume trend resulting from the substitution
of letters by electronic forms of communication continued. After a
turbulent 2020 marred by COVID-19, which saw a 7 % drop in the letter mail
volume due to stringent lockdown measures, the volume decline for the
current period came to 4 %. The development remains characterised by the
difficult overall conditions. Special mailings due to COVID-19 measures
and the adjustments to letter mail products and prices with effect from 1
April 2020 had a positive impact on revenue. The Business Solutions area
showed a decline compared to the previous year.
Revenues in the Direct Mail segment increased by 2.6 % to EUR 329.3m in
the 2021 reporting year. The same period of the previous year saw a
decline of 13.7 %. In the Direct Mail business, the branch closures
imposed by the authorities in response to COVID-19 had a particularly
negative impact. The current situation is a volatile one, and direct mail
will continue to decline as part of a structural transformation process.
The revenue from Media Post, i.e. the delivery of newspapers and
magazines, rose by 2.8 % year-on-year to EUR 123.4m. This increase is
mainly due to the decline in the previous year (-9.1 %).
Revenue in the Parcel & Logistics Division increased by 36.4 % to EUR
1,245.7m in 2021, with organic growth of 14.2%. Parcel volumes in Austria
showed weaker growth after substantial increases in the comparable period
of the previous year (2020: +30 %) and came in at the forecast value of 11
% in 2021. The increase in parcel volumes was also less pronounced
compared to the previous year in the Southeast and Eastern European market
at 16 % (2020: +27 %). In Turkey, Austrian Post recorded a moderate
increase in parcel volumes of 5 % as against the strong previous year
(2020: +37 %). The positive development in the Parcel & Logistics Division
is based, among other things, on the ongoing e-commerce trend in all
markets. The COVID-19 pandemic has had a long-term impact on online
retail. The Turkish subsidiary Aras Kargo, which has been included in the
consolidated financial statements as a fully consolidated subsidiary since
25 August 2020, also made a positive contribution of EUR 290.7m to revenue
development in 2021. The reporting period also included positive
non-recurring effects from logistics services amounting to around EUR 30m.
The trend towards faster parcel delivery continues. In total, 66.0 % of
the division’s revenue in the reporting period was generated in the
Premium Parcels segment (delivery on the working day after posting). This
corresponds to an increase of 44.8 % to EUR 822.2m in the 2021 financial
year.
The Standard Parcels segment accounted for 25.1 % of total revenue for the
division. In the 2021 financial year, this segment recorded a 14.3 %
increase in revenues to EUR 313.2m.
The other parcel services segment, which comprises various additional
logistics services and accounts for 8.9 % of divisional revenue, generated
EUR 110.3m in revenue in 2021, up by 54.2 % thanks to positive
non-recurring effects.
An analysis by region shows that in 2021, 63.6 % of divisional revenue was
generated in Austria, with an increase of 18.5 % compared to the same
period of the previous year. 36.4 % of the division’s revenue was
generated by subsidiaries‘ international business, with 23.3 % generated
in Turkey and 13.1 % in Southeast and Eastern Europe. Revenue growth in
the highly competitive Southeast and Eastern Europe region came to 13.6 %
in 2021, driven by increased parcel volumes due to the COVID-19 pandemic.
Revenue in the Retail & Bank Division increased by 10.8 % from EUR 67.4m
to EUR 74.7m in the 2021 financial year.
Branch Services fell by 6.8 % from EUR 44.8m to EUR 41.8m in the current
reporting period due to the absence of various service fees from the
former banking partner, which were still included in the figures for the
previous year, as well as lower revenue from the sale of merchandise. The
branch products developed in the opposite direction, showing a slight
increase due to additional orders.
Income from financial services of EUR 32.9m showed a positive development
in the 2021 financial year. bank99 entered the market on 1 April 2020, and
the transaction to take over ING’s retail banking business in Austria was
closed in December 2021. This means that, by the end of 2021, bank99
already boasted more than 200,000 customers.
EARNINGS DEVELOPMENT
The structure of expenses of Austrian Post is characterised by a high
share of staff costs. Accordingly, 48.1 % of total operating expenses
incurred by Austrian Post in 2021 were accounted for staff costs. The
second largest expense item, which constituted 29.7 % of operating
expenses, was raw materials, consumables and services used, a large part
of which related to out-sourced transport services. Furthermore, 15.1 %
could be attributed to other operating expenses and 6.9 % to write-downs.
The item Expenses for financial services accounts for 0.2 % of total
operating expenses. The individual income statement items can only be
compared with the previous year to a limited extent due to the full
consolidation of the Turkish company Aras Kargo with effect from 25 August
2020.
Staff costs in the 2021 financial year amounted to EUR 1,160.1m, up by
11.4 % or EUR 118.7m. On a comparable basis, i.e. excluding Aras Kargo,
staff costs were up by 7.1 % overall or EUR 72.8m in a year-on-year
comparison. Operational staff costs expenses rose in a year-on-year
comparison due to the full consolidation of the Turkish company Aras
Kargo, as well as additional expenses resulting from the increased parcel
business. The Austrian Post Group had an average of 27,275 employees
(full-time equivalents) in 2021, compared to an average of 22,966
employees in the same period of the previous year (+18.8 %). Once again,
the increase is mainly due to the full consolidation of Aras Kargo, as
well as to increased demand for employees in logistics. Excluding Aras
Kargo, the average number of employees in 2021 increased by 1.3 % or 277
full-time equivalents. In addition to operational staff costs, staff costs
of Austrian Post generally also include various non-operating expenses
such as severance payments and changes in provisions, which can be
attributed primarily to the specific employment situation of civil servant
employees. Non-operating staff costs rose compared to the previous year,
mainly as result of staff-related provisions for under-utilisation.
Raw materials, consumables and services used increased by 20.0 % to EUR
715.7m. On a comparable basis, i.e. excluding Aras Kargo, the cost of
materials was up by 5.6 % or EUR 30.3m on the previous year’s level. The
increase is mainly due to higher transport expenses as a result of the
huge parcel volumes and higher sales commission.
Other operating income rose by 48.5 % to EUR 95.2m in 2021. On a
comparable basis, i.e. excluding Aras Kargo, other operating income was up
by 39.9 % or EUR 23.5m on the previous year’s level, and included effects
resulting from the takeover of ING’s retail banking business in Austria.
Other operating expenses also rose by 15.7 % to EUR 363.8m. On a
comparable basis, i.e. excluding Aras Kargo, other operating expenses were
up by 11.2 % or EUR 34.1m on the previous year’s level. In the reporting
period, this item mainly included the options for the acquisition of the
remaining 20% of the shares in Aras Kargo, as well as provisions set up in
connection with data protection proceedings.
EBITDA of EUR 370.4m was EUR 22.3m above the previous year (EUR 302.8m),
corresponding to an EBITDA margin of 14.7 %. The increase in EBITDA is a
result of the excellent parcel revenue development in all markets.
Depreciation, amortisation and impairment losses in the reporting period
totalled EUR 159.6m, compared with EUR 139.8m in the previous year. The
increase is mainly attributable to investments in new parcel logistics
infrastructure locations and the full consolidation of Aras Kargo.
Impairment losses of EUR 6.1m were above the previous year’s level of EUR
2.3m. EBIT of EUR 204.7m was up by 27.5 % from the previous year. The EBIT
margin amounted to 8.1 %, allowing EBIT to exceed the 2019 pre-pandemic
level.
The Group’s financial result of EUR 11.7m was EUR 10.2m above the level
seen in 2020 and mainly related to foreign currency effects. After
deducting income tax of EUR 58.0m, the profit for the period therefore
came to EUR 158.4m (+37.4 %). Basic earnings per share were EUR 2.25
compared to EUR 1.75 in the same period of the previous year.
EARNINGS BY DIVISON
Earnings (EBIT) rose from EUR 160.6m to EUR 204.7m (+27.5 %) in the 2021
financial year and were characterised primarily by the improved earnings
trend in the Parcel & Logistics Division. Both the domestic business, with
higher parcel volumes and positive non-recurring effects, and the
international parcel business showed very encouraging development. The
full consolidation of the Turkish company Aras Kargo has been making a
positive contribution to Group net profit since 25 August 2020.
In terms of divisional result, the Mail Division achieved an EBIT of EUR
155.2m in 2021. This corresponds to a drop of 5.6 % to EUR 9.2m. In the
current reporting period, the adjustments to letter mail products and
prices with effect from 1 April 2020, as well as special mailings in
connection with the COVID-19 pandemic, had a positive effect, while the
high intensity of fixed costs in the letter mail business and negative
effects in the form of provisions had the opposite effect.
The Parcel & Logistics Division achieved revenue growth in an environment
of intense competitive pressure, generating EBIT of EUR 118.1m in 2021.
This corresponds to an increase of 60.6 % or EUR 44.5m compared to the
same period of the previous year. All markets reported increased earnings
due to excellent revenue development. The full consolidation of the
Turkish company Aras Kargo, which was hit by negative currency translation
effects due to pressure on the Turkish lira in the second half of the
year, had a significant impact on the increase in earnings, but showed
excellent development in operational terms. The parcel business in Austria
also showed positive development on the basis of revenue. Positive
non-recurring effects were achieved through logistics services relating to
the pandemic.
The Retail & Bank Division reported EBIT of minus EUR 39.2m in 2021, as
against minus EUR 43.8m in the previous year. The ramp-up of the financial
services business had a positive effect on the result, which improved by
10.4 % or EUR 4.6m. The result for 2021 also includes a negative
non-recurring effect in the form of a personnel provision that was
recognised primarily in the first quarter of 2021.
EBIT in the Corporate Division (including consolidation and intra-Group
cost allocation) changed from minus EUR 33.5m to minus EUR 29.3m due to
positive income from the sale of properties. The Corporate Division
provides non-operating services which are essential for the purpose of the
administration and financial control of a corporate group. In addition to
conventional governance tasks, these activities include the management and
development of properties not required for operations, the management of
significant financial investments, the provision of IT services, the
development of new business models and the administration of the Internal
Labour Market of Austrian Post.
CASH FLOW AND BALANCE SHEET
Cash flow from earnings amounted to EUR 442.4m in the 2021 financial year,
compared with EUR 328.3m in the previous year (+34.8 %). Cash flow from
operating activities amounted to EUR 493.3m in the reporting period after
EUR 732.6m in the previous year. The biggest effects here included the
changes in the core banking assets of bank99 (financial assets/liabilities
from financial services) of EUR 193.2m; these amounted to EUR 522.2m in
the previous year. Core banking assets include the change in the balance
sheet items Financial assets from financial services and Financial
liabilities from financial services, excluding cash, cash equivalents and
balances with central banks, meaning that they encompass bank99’s deposit
and investment business.
Cash flow from investing activities amounted to EUR 255.1m in 2021 after
EUR 7.0m in the previous year. The increase was mainly due to the takeover
of ING’s retail business in Austria and the cash and cash equivalents
acquired in the process. The purchase /sale of securities /money market
investments was lower in the current reporting year than in the previous
year, as the returns from fixed-term deposits were lower in 2021 than in
2020.
Austrian Post relies on operating free cash flow as an indicator in order
to assess the financial strength of its operating business and to cover
the dividend for the financial year. Excluding the change in core banking
assets, operating free cash flow amounted to EUR 217.9m in the current
reporting period, compared to EUR 125.7m in the previous year.
Cash flow from financing activities came to minus EUR 123.3m in the 2021
financial year and mainly included distributions of EUR 120.0m.
Austrian Post relies on a solid balance sheet and financing structure.
This is demonstrated by the excess liquidity and the solid investment of
cash and cash equivalents at the lowest possible risk. Austrian Post’s
total assets amounted to EUR 4,792.6m as at 31 December 2021. On the asset
side, property, plant and equipment amounting to EUR 1,206.5m is one of
the largest balance sheet items and includes right-of-use assets in
connection with leases in the amount of EUR 331.3m. In addition, there
were intangible assets and goodwill from company acquisitions, which are
reported at EUR 143.8m as at 31 December 2021. The balance sheet shows
receivables of EUR 391.0m, which include current trade receivables of EUR
303.8m. Other financial assets amounted to EUR 37.0m as at 31 December
2021. Financial assets from financial services amounted to EUR 2,715.8m at
the end of 2021 and mainly result from the business activities of bank99.
On the equity and liabilities side of the balance sheet, the equity of the
Austrian Post Group amounted to EUR 672.2m as at 31 December 2021 (equity
ratio of 14.0 %). Provisions amounted to EUR 687.9m, while trade and other
payables totalled EUR 484.6m at the end of December 2021. Financial
liabilities from financial services amounting to EUR 2,543.5m result
primarily from the business activities of bank99 (deposit and investment
business of bank99’s customers).
OUTLOOK FOR 2022
The impact of the COVID-19 pandemic also left its mark on a number of
economic indicators in the second half of 2021. Supply bottlenecks and
delays in the global value chain emerged, as did a trend towards rising
inflation figures. These trends are expected to continue and have a
negative impact on the flow of trade and goods in the mail and parcel
business. Positive special effects from logistics services are likely to
decrease in the course of 2022. The Austrian market is currently
characterised by restrained consumer spending, and the Turkish market,
which is important for Austrian Post, is also facing a difficult
environment due to inflationary and currency pressures. In addition,
inflation is likely to become more entrenched as a result of the acts of
war in the Ukraine. Very challenging economic conditions can therefore be
expected for 2022.
Revenue stable in 2022
Given the emerging economic challenges, Austrian Post is aiming for as
stable revenue performance as possible for the full year 2022. This will
require a gradual trend towards the economic environment and the
propensity to consume returning to normal, but also an easing of the
currency pressure on the Turkish lira.
In the Mail Division, business is expected to decline slightly in 2022.
The volatile development witnessed over the last years – caused by various
restrictions imposed in response to the pandemic – will decrease overall.
The volume of traditional letters is likely to continue to decline due to
structural factors at a rate of around 5 % p.a. in the coming quarters.
Inflationary cost increases heighten the need for corresponding product
and price adjustments. Slightly negative trends are also to be expected in
Direct Mail and Media Post due to restrained advertising behaviour.
Revenue in the Parcel & Logistics Division has doubled over the last two
years thanks to both organic and external growth. Volatile development is
expected over the quarters in 2022, and the overall target is to match the
previous year’s level. It will, however, be especially difficult in the
first half of the year to reach the peak values of the previous year as
these were caused by non-recurring effects. In 2021, the pandemic boosted
e-commerce across the board and also increased competition. In the current
year, the internal delivery service of a major customer in Austria will
continue to rise and the positive effects from pandemic-related logistics
services will decrease. The economic environment in the Turkish market is
also expected to be challenging in the current year.
By contrast, revenue development in the Retail & Bank Division, which
comprises bank99 since the latter was launched in April 2020, will improve
in the 2022 financial year. In December 2021, the transaction to acquire
ING’s retail banking business in Austria was closed, laying a solid
foundation for integration and growth.
Group Earnings in 2022
An earnings forecast for 2022 for Austrian Post is difficult given the
current environment. There is reason to fear that we will see inflationary
tendencies not only in the short term, but also in the longer term. This
could have an impact not only on the cost situation, but also on the
purchasing power and buying behaviour of consumers. After the exceptional
tailwind seen in the parcel business in recent years, we now expect a
consolidation and a decline in positive non-recurring effects.
Despite the emerging negative environment, Austrian Post is aiming for a
Group result (EBIT) that is as close as possible to the level seen in the
previous year (EBIT 2021: EUR 205m). The assumption is that further
lockdowns can be avoided in the retail sector and efficient letter and
parcel logistics can be maintained.
Continuous Investment Programme
The parcel growth seen in recent years shows how important it is to be
able to ramp up the necessary logistics capacities quickly. The planning
parameters for the expansion programme include the predicted annual volume
increases in the individual regions and the planned steps towards
carbon-neutral delivery. As a result, Austrian Post’s investment programme
will remain intact so that it can ensure high-quality service in terms of
efficiency and speed. The measures are based on maintenance CAPEX in
Austria, South-eastern and Eastern Europe and Turkey of approximately EUR
100m for the 2022 financial year. In addition, the company is once again
planning growth CAPEX of around EUR 80m in Austria. The changes to
logistics structures to enable climate-neutral Delivery plays a key role
in all investment projects.
Austrian Post’s goal remains to combine growth with strong dividends. The
growth opportunities that arise will be secured through appropriate
structural investments. In addition, the aim is for the cash flow
generated from operating activities to continue to cover the necessary
basic investments, as well as allowing the company to maintain an
attractive dividend policy.
The Management Board will propose to the Annual General Meeting scheduled
for 21 April 2022 the distribution of a dividend in the amount of EUR 1.90
per share. Thus, the company is continuing its attractive dividend policy
on the basis of a solid balance sheet structure and generated cash flow.
Austrian Post continues to pursue the objective of distributing at least
75 % of the Group’s net profit to its shareholders.
CONTACTS Austrian Post
Austrian Post Harald Hagenauer
Ingeborg Gratzer Head of Investor Relations, Group
Head of Media Relations & Internal Auditing & Compliance
Communications Tel.: +43 (0) 57767-30400
Tel.: +43 (0) 57767-32010 investor@post.at
presse@post.at
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11.03.2022 This Corporate News was distributed by EQS Group AG.
www.eqs.com
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Language: English
Company: Österreichische Post AG
Rochusplatz 1
1030 Vienna
Austria
Phone: +43 577 67 – 30400
E-mail: investor@post.at
Internet: www.post.at
ISIN: AT0000APOST4
WKN: A0JML5
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 1298821
End of News EQS News Service
1298821 11.03.2022
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