PostNL Q2 parcel volumes up 7%, but mail down 11%

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PostNL has reported “solid” results for the second quarter (Q2) of 2015, with revenues stable at €824m (down €3m on 2014). The parcels business registered a 7.1% increase in volume, but addressed mail volume was down by 11.2%.

Underlying cash operating income increased to €65m from €58m in Q2 2014.

In a statement issued today (3 August), Post NL confirmed that it expected full year underlying cash operating income of between €280m and €320m.

Commenting on the Q2 results announced today, Herna Verhagen, the CEO of PostNL, said: “Overall, the second quarter performance further solidified the base for delivering the full year outlook. We reconfirm that the second half year will be better than last year, helped by extra working days in the last quarter and the phasing in cost savings and volumes. We remain on track to achieve our outlook for 2015.”

The PostNL CEO then summarised some of the recent key developments for the quarter: “In Parcels we took an important step towards a responsible and competitive delivery model by offering all independent parcel deliverers the option to enter the company’s employ or remain self-employed with increased pay.

“In the United Kingdom, PostNL and management of Whistl have reached an agreement on the main conditions for a management buy-out.”

As previously reported, PostNL and Whistl both announced the news of the agreement of the MBO on Thursday (30 July).

PostNL’s new arrangement with its independent parcel deliverers in the Netherlands was not a completely smooth process: some of the deliverers were initially lukewarm on the proposals and went on strike for a few days in mid-July – but the dispute was resolved fairly quickly.

Focusing on PostNL’s results, Verhagen said: “In Mail in the Netherlands, price increases and cost savings compensated part of the volume decline.

“Parcels continued its solid performance with volume up 7%, helped by growth in its cross-border activities.

“The result in International, now reported excluding the United Kingdom, further improved, mainly explained by better performance of Germany.

“The strategic review of our German and Italian operations is in progress.

“We note the continued satisfactory progress in our financial positon. Net cash from operating and investing activities moved in line with expectations. Furthermore, we redeemed the Eurobond that expired in June, fully from our cash position. Our consolidated equity position benefited both from the increased value of our stake in TNT Express as well as from the increase in interest rates.”