PostNL sees EURO 20m loss as consumer confidence falls

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https://apex-insight.com/postnl-sees-e2 ... nce-falls/

In the face of a third quarter loss of €20 million, PostNL has warned of low consumer confidence impacting its business in the coming quarter.

Driven in a large part by a 200% increase in energy prices, inflation in the country is at an all-time high. This has impacted consumer confidence and in turn, many e-commerce retailers are reporting higher than expected stock levels.

“It has clearly impacted consumer spending,” Herna Verhagen said in a statement. “Retail shops as well as web shops are now signalling that their stocks are growing.”

The postal operator has also been hit by high labour costs as its unions have fought for higher pay in order to meet the cost of living crisis. Fuel and energy are also impacting PostNl’s overall costs.

“We expect these headwinds to continue in the quarters to come,” Verhagen said.

Thanks to its e-commerce retail clients engaging in discounting to shift stock, the postal operator expects that the fourth quarter will be its strongest of the year and that Q4 revenues will be similar to that of 2021.