December 08, 2020
08:18
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Bpost unveiled its new “Connect 2026” strategy. It aims to accelerate its transformation into an omnicommerce group. The shareholders are not forgotten.
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We know it, post
has been facing an erosion of classic mail and an explosion in e-commerce for years. Today, the postal operator unveiled its strategy called “Connect 2026” and intended for accelerate its transformation into a omnicommerce group sustainable. Bpost also wants remain an efficient mail provider in Belgium. The stated ambition is to seek more than compensate for the loss of ebit resulting from the decline in mail activity over the period 2021 to 2026.
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The new strategic vision is built around 7 ambitions detailed in the press release. At this point, let’s remember three: to be the trusted partner of brands, to enable them to successfully develop their omnicommerce activities, make Belgium a country of omnicommerce first-rate and finally, guarantee sustainable profitability long-term and secure investments aimed at transforming activities beyond mail.
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Investments
To deploy its strategic vision, bpost counts invest in growth activities related to parcels and e-commerce logistics. Targeted mergers and acquisitions will help accelerate the development of Radial Europe, assures the group. Investment projects will have to meet strict criteria. It will be, among other things, to achieve a minimum return exceeding the weighted average cost of capital by at least 2%, while limiting the amortization period.
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“Our new strategic vision puts our role in society forward more than ever, by underlining our desire to develop new services, as an inclusive organization that respects the planet.”
Jean-Paul Van Avermaet
CEO of post
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Dividend
In regards to shareholder compensation, bpost’s future dividend policy provides for distribution of 30 to 50% of net profit IFRS. This policy offers sufficient flexibility to implement the strategy, judges the group, while maximizing returns for shareholders and strengthening the creation of longer-term sustainable value.
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The postal group also intends to pick up an “investment grade” credit rating intended to further strengthen long-term sustainable growth.
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Finally, bpost will also conduct active management of its portfolio, under which non-core assets could be identified for possible sale.
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