Though in a large part carried by its wider interests in financial services, Poste Italiane reported an 8.1% y-o-y growth in revenues for the first quarter to €3.044bn. Operating profit grew by 11.2% to €767m in the quarter.
Amongst highlights of the financial quarter, the postal operator saw a 57.7% jump in profits to €88m for its Mail, Parcels and Distribution segment. This was on a revenue drop of 0.9% to €893m.
Parcels revenue for the quarter remained steady at €333m (no change compared to Q1 2022) but parcel volumes for the quarter were up 3% at 59m. Revenue for B2C parcels stood at €187m, compared to €170m for the previous period.
Speaking of the large jump in profits over overall falls in revenue, Matteo del Fante, CEO of Poste Italiane said, “Our B2C parcel volumes increased compared to a stable wider market, whilst mail revenues improved thanks to repricing actions and higher value-added services.”
While much of the postal operators focus has been on its financial products, it has invested in its delivery business. As well as refurbishing 200 post offices in the quarter, it has continued to invest in alternative fuelled vehicles and now has over 4,300 electric vehicles in its fleet.
Poste Italiane is focusing its diversification into financial services such as mobile payments, insurance and savings. These all saw growth and formed the bulk of revenues and profits for the organisation. Speaking of the organisation as a whole, Del Fante continued, “First quarter results are very strong, significantly increasing visibility on 2023 guidance with a solid financial performance and profitable contributions from all businesses, while confirming cost discipline. Commercial trends have been supportive in all businesses.“
All postal operators are diversifying preparation for a time when mail delivery will be a very small interest due to natural moves away from paper mail delivery. It is a good sign for Poste Italiane that its B2C parcels revenue has grown strongly over the last year and is an indication that the ecommerce market in Italy is growing.
Author: Paul Chapman
Source: Ti Insights
Supply chain strategists can use GSCi – Ti’s online data platform – to identify opportunities for growth, support strategic decisions, help them stay abreast of industry trends and development, as well as understand future impacts on the industry.
Visit GSCI subscription to sign up today or contact Michael Clover for a free demonstration: [email protected] | +44 (0) 1666 519907
