For the first quarter of the year, Austrian Post reported an 18.7%y-o-y growth in EBIT to €47m on revenue growth up 10.5% y-o-y to €664.7m.
For this quarter, Austrian Post took greater revenues from its Parcel and Logistics business but greater profits from its Mail Division. Mail Division revenues grew by 3.3% to €308.6m. Declines in mail volumes continued, but these were offset by postal rate increases instituted the previous year. EBIT for the segment declined by 0.3% y-o-y to €41m.
Parcel & Logistics saw a greater decline in operating profit than the Mail Division at -4% y-o-y despite a growth in revenues of 15.5%. According to the postal operator this increase in revenue was due to strong growth in volumes in both the Austrian and Turkish parcel businesses, though these were offset by falls in earnings at Southeastern and Eastern European subsidiaries.
Hyperinflation on the Turkish Lira impacted revenue growth in the Parcel Turkey segment, with revenues up 65.9% alongside an 8% growth in volumes. Austrian Post is now instituting IAS 29 accounting standards for hyperinflation in a currency regarding its exposure to the Lira.
One major factor hitting earnings for the postal operator was a hike in staff costs due to a collective labour agreement with postal workers unions thanks to inflation leading to increased pay demands. Staff costs were still down 4.1% y-o-y, in part due to changes in labour force numbers. In addition fuel and raw materials costs were up 11.1% in the quarter, led by factors associated with the war in Ukraine.
Austrian Post’s leadership was positive overall with the results. “Against the backdrop of rising costs, the first quarter went well, as reflected in the higher revenue and earnings,” stated Austrian Post CEO Georg Pölzl.
Source: Austrian Post
Author: Richard Shrubb
