PostNL's 2023 profit forecast misses estimates as costs soar

[TrueBlueTerrier]

https://www.reuters.com/markets/europe/ ... 023-02-27/

Dutch postal firm PostNL (PTNL.AS) on Monday forecast 2023 operating profit below market expectations, as it said higher organic costs would not be fully offset by price adjustments this year.

PostNL has taken measures to mitigate the impact from cost increases and weaker-than-anticipated volumes after pandemic-driven highs, including price adjustments, personnel and fleet optimization, and tight control of overhead costs.

"We saw a sharp increase in labour and fuel costs. At the same time, parcel volumes were under pressure as the economic developments impacted consumer spending, but also due to overcapacity in the market," Chief Executive Herna Verhagen said in an annual earnings statement.


The company, which delivers parcels and letters across Belgium, the Netherlands and Luxembourg, expects normalised earnings before interest and taxes (EBIT) of between 70 million and 100 million euros ($73.76 million and $105.37 million) in 2023.


This compares to normalised EBIT of 84 million euros last year, ahead of a company-compiled consensus of 79 million, following two guidance cuts and a profit warning last year.

Jefferies analysts wrote in a note to clients the guidance was 43% below consensus, reflecting cost headwinds and loss of market share in parcels.

The company predicted a further low-single-digit percentage decline in volumes this year.

Aiming to further reduce indirect costs and improve efficiency, PostNL on Monday said it planned to cut 200-300 jobs in support roles by the end of the year, resulting in 20 million euros of restructuring provisions and related costs in 2023.

PostNL added it would delay the second tranche of its share buyback programme, which it had planned to execute this year, until further recovery of business performance.

[Barnacle]

Oh looky here, PostNL has observed a downturn in parcel volumes since the pandemic due to financial pressures faced by its customers. So NOTHING TO DO WITH STRIKE ACTION.

Why did the board of RM not foresee the downturn which everyone else could see coming? Why did the continue to funnel all monies towards parcels while completing ignoring the billions of letters we deliver every year?

Oh sorry, just remembered, we’re a parcel company.