Oesterreichische Post (POST) Q2 2024 earnings summary

Executive summary

• Revenue increased 17.2% year-over-year to EUR 1,505.2m in H1 2024, with strong growth in Parcel & Logistics (+28.1%) and Retail & Bank (+25.0%) divisions, and a confident outlook for the remainder of the year.

• EBIT rose 10.9% to EUR 105.6m, supported by parcel volume growth, positive pricing effects, and robust performance in Türkiye.

• Transformation from a mail-dominated business to a balanced portfolio, with mail volumes declining but revenue supported by elections and price adjustments.

• Inflation and currency effects in Türkiye had a significant positive impact on revenue and earnings, with EBIT margin above group average.

• Major elections in Austria and robust e-commerce volumes, especially from Türkiye, supported results.

Financial highlights

• EBITDA increased by 11.9% to EUR 211.5m, with a margin of 14.1%; EBIT margin at 7.0%.

• Operating free cash flow rose to EUR 147.1m, including positive tax effects from previous periods.

• Equity stood at EUR 682.0m (equity ratio 11.4%), with pro-forma 28% including bank99 under equity method.

• Earnings per share at EUR 1.12, nearly flat year-over-year.

• Dividend of EUR 120.2m paid in H1 2024.

Outlook and guidance

• Revenue for 2024 expected to grow at least in the upper single-digit range, with mid-single-digit EBIT improvement anticipated, assuming stable macroeconomic conditions.

• Mail revenue to remain largely stable; Parcel & Logistics and Retail & Bank to see double-digit growth, with parcel growth highly dependent on Turkish Lira exchange rate.

• Guidance remains cautious due to Turkish lira volatility, further staff cost increases, and no additional mail price hikes planned.

• CAPEX for 2024 planned at EUR 140–160m, with EUR 40–50m for green transformation and EUR 30m for growth, mainly in Türkiye and CEE/SEE.