Austrian Post defies macroeconomic environment with growth

Austrian Post reported a 5% EBITDA growth on revenues up 8.7% y-o-y, even in the face of macroeconomic factors that have impacted Europe as a whole. In October, its longstanding CEO Georg Pozl is to stand aside after 15 years at the helm. 

Outgoing CEO, Georg Pozl said, “2023 proved to be a very satisfactory year. Growth in the parcel business and the increase in bank99’s financial services have more than offset the decline in letter mail and direct mail items.”

Overall EBITDA grew 5% y-o-y to €391.6m on revenues that grew 8.7% to €2,740.8m. By division:

  • Mail revenues fell 2.3% y-o-y to €1,190m with EBIT down 3.4% to €152.3m
  • Parcel & Logistics revenue was up 16.6% to €1,416.5m and EBIT +0.8% to €89.5m
  • Retail and Bank revenues were up 37.6% to €168.8m, and EBIT losses fell 48.6% y-o-y to minus €13.7m

Where it came to overall volumes, mail saw a 9.4% y-o-y drop to 4,095m pieces where parcels saw a 9.9% growth to 476m pieces. 

Parcels business yet to see strong profitability

The macroeconomic environment did serve to hit profitability in the parcels business which, while now the major revenue stream of Austrian Post over and above the mail division, only saw marginal profit growth. A breakdown of its revenues by region is as follows:

  • Parcel Austria saw revenue growth of 10.9% y-o-y to €806.4m
  • Parcel Turkey, revenue growth of 41.0% to €355.1m after currency adjustments
  • Parcel CEE/SEE revenue growth of 15.2% to €198.1m
  • Logistics solutions had a 10.7% revenue drop to €56.9m

Pozl continued, “The extensive investment programme implemented in recent years has been completed, and led to a tripling of [parcel] sorting capacities in Austria.” Pozl won’t be at the helm at the next phase of investment, though he said, “In the coming years, investments will focus on automation, digitalisation and expansion of international logistics and electric vehicles.”

Longstanding CEO to step down

With 15 years at the helm of Austrian Post, Georg Pozl is the longest serving CEO in the postal operator’s history. In October 2024 he is to step aside and be replaced by current Deputy CEO and CFO Walter Oblin.

Speaking of the choice of Oblin, Chair of the Austrian Post Supervisory Board Elisabeth Stadner said, “As a longstanding member of the management board he has extensive industry and management experience to ensure that stability of the company together with the team of Austrian Post.”

Oblin has been CFO of Austrian Post for nine years and Deputy CEO since 2019. He said of his appointment, “My aim is to continue to be there for customers, employees and the environment in equal measure. We want to be a modern, innovative logistics and technology company for our customers and an attractive and future-oriented employers for our employees.”

Given the success of the company in the face of the pan European economic uncertainties in recent years, Oblin has big shoes to fill. We wish him well in his efforts to further confound the macroeconomic factors that have impacted nearly every other logistics company in the region.

Author: Richard Shrubb