Posti Group (POSTI) Q2 2024 earnings summary

Executive summary

• Profitability reached the highest level in a decade, with adjusted EBITDA and operating results improving significantly despite a 2.3% year-over-year drop in Q2 2024 net sales to EUR 377.8 million and a 3.1% decline in H1 2024 net sales to EUR 759.9 million, driven by operational efficiency and cost management.

• Parcel volumes grew by 5% year-over-year in Finland and the Baltics, while addressed letter volumes continued their structural decline, down 10% in Q2 and 13% in H1.

• Fulfillment and Logistics Services faced weak demand and lower warehouse volumes but maintained stable profitability.

• Operational efficiency gains and cost discipline, especially in eCommerce, Delivery, and Postal Services, contributed to higher margins.

Financial highlights

• Adjusted EBITDA increased to EUR 49.5 million (13.1% of net sales) in Q2 and EUR 102.5 million (13.5%) in H1, up from EUR 38.0 million (9.8%) and EUR 80.5 million (10.3%) respectively.

• Operating result improved to EUR 12.4 million (3.3% of net sales) in Q2 and EUR 30.5 million (4.0%) in H1.

• Result for the period was EUR 7.3 million in Q2 and EUR 19.6 million in H1.

• Net debt stood at EUR 255.8 million, with net debt/adjusted EBITDA at 1.2x.

• Operative free cash flow was negative at EUR -7.1 million in both Q2 and H1.

Outlook and guidance

• 2024 outlook remains unchanged: net sales and adjusted EBITDA expected to be on par with 2023 levels (€1,586.1M and €197.7M).

• Macroeconomic uncertainty, consumer confidence, and business seasonality are key risks.

• Postal volume decline is expected to continue.