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 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 contract 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 performance and operational efficiencies.

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

Financial highlights

• H1 2024 revenue reached €6.2bn, up 3% year-over-year, or 7.3% on an underlying basis; Q2 at €3.1bn, up 8.7% year-over-year underlying.

• Adjusted EBIT for H1 at €1.5bn, up 14% year-over-year underlying; net profit at €1.0bn, up 14% year-over-year underlying.

• Total Financial Assets rose to €589bn (+1.4% vs Dec 2023), driven by positive net inflows and performance effects.

• CAPEX reached €268m (+7.8% y/y), with 70% ESG-aligned investments.

• Strong cash generation and ample liquidity, with €4.6bn cash and €5.4bn available liquidity.

Outlook and guidance

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

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

• Strategic plan focuses on logistics transformation, digital payments, energy market expansion, and omnichannel integration.

• Continued investment in sustainability, digitalization, and customer-centric services, with carbon neutrality targeted by 2030.

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