Bpost Reports Stronger Sales Amid Net Profit Drop
French Acquisition Boosts Turnover but Weighs on Bottom Line
Bpost has announced a significant increase in its second-quarter turnover and operating results, though its net profit saw a sharp decline. The company attributes the performance to its ongoing transformation plan, with the recent acquisition of Staci playing a key role.
Turnover Surges on Staci Acquisition
The postal group’s turnover reached 1.09 billion euros in the second quarter, marking a 10.5 percent rise compared to the same period last year. This growth is substantially influenced by the integration of the French package specialist Staci, acquired last year.
Operating Performance Solid, Net Profit Hit
Bpost Group’s adjusted EBIT stood at 58.3 million euros, with a margin of 5.3 percent. The Staci acquisition contributed 20.6 million euros to this figure. However, the overall net profit fell considerably to 1.3 million euros, a steep drop from the 31.7 million euros reported in the second quarter of the previous year. This reduction is linked to the considerable cost of the Staci acquisition, which increased net debt and interest expenses.
“Our results are in line with expectations,” said Chris Peeters, CEO of Bpost Group. “The transformation plan is gaining momentum; it turned out. Staci’s contribution confirmed the strategic shift.”
—Chris Peeters, CEO of Bpost Group
The acquisition strategy, while boosting sales, highlights the financial balancing act Bpost is undertaking. In comparison, major logistics competitors like FedEx saw a 9% increase in revenue in their fiscal third quarter, driven by domestic demand and pricing strategies, demonstrating the varied impacts of market conditions and strategic investments across the sector.
Outlook Reaffirmed, Aiming for Upper Bandwidth
Despite the dip in net profit, Bpost has reaffirmed its financial outlook for the full fiscal year. The company expects its EBIT to reach the top end of its previously stated range of 150 to 180 million euros. This guidance, initially set in February and maintained in May, now anticipates a stronger performance within the projected bandwidth.
