Resilience over second quarter 2020 driven by Parcels & Logistics performance in North America and Eurasia
Monday, August 4 2020
Second quarter 2020 highlights
Group operating income at EUR 1,052.7m, +12.5% compared with the same period last year and driven by strong Parcels BeNe and E-commerce logistics growth in both Europe and North America.
Group reported EBIT at EUR 71.0m. Adjusted EBIT at EUR 75.6m (margin of 8.1%).
Mail & Retail
Reported EBIT at EUR 35.4m. Adjusted EBIT at EUR 36.0m (7.7% margin), down by -51.9% mainly from mail evolution (-17.7% underlying mail volume decline) amplified by COVID-19.
M&R COVID-19 impact estimated at EUR -37.0m.
Parcels & Logistics Europe & Asia
Reported EBIT at EUR 31.6m. Adjusted EBIT at EUR 32.4m (11.0% margin), up EUR 13.0m (+67%) operationally excluding year-over-year negative evolution of terminal dues settlements. EBIT growth mainly driven by thriving e-commerce resulting in Parcels BeNe volume growth of +78.4%. Additional investments in parcels sorting capacity enable to structurally absorb higher peak volumes.
PaLo Eurasia COVID-19 impact1 estimated at EUR +13.1m delivering customer needs in challenging times.
Parcels & Logistics North America
Reported EBIT at EUR 14.2m. Adjusted EBIT at EUR 17.6m (5.0% margin), up EUR 18.1m fully driven by Radial North America, which recorded high growth from existing customers and clients launched in 2019 (E-commerce Logistics operating income +53.5%).
PaLo N. America COVID-19 impact estimated at EUR +16.5m accelerating its performance during the crisis.
Total COVID-19 impact on Group EBIT estimated at EUR -9.5m for the second quarter 2020. Excluding COVID-19 and last year’s gain on disposal of the HQ building (EUR 19.9m), second quarter 2020 EBIT was favourably impacted by targeted cost containment actions and cost phasing towards the second half of 2020.
Outlook 2020. Based on the current situation and facts, the initial 2020 Group adjusted EBIT guidance range of EUR 240-270m is reconfirmed, if no second or important local lockdown in 2020 or any event deriving from COVID-19 uncertainties materialises.
Dividend 2020. The Board decided not to grant a dividend on the results of FY20 to its shareholders. bpost Group remains fully committed to delivering sustainable shareholder returns. Given the high level of uncertainty that still remains in light of COVID-19 and its impact on the overall economy, bpost Group’s priority is in the current circumstances the strength of bpost’s balance sheet and cash reserves on the long term. A new dividend policy going forward will be decided by the Board when the longer term impact of the COVID-19 crisis becomes more clear.
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