La Poste revenues increase by 4.5% while operating profit falls by 33.3% for H1 2019

For the half year ending June 30, 2019, La Poste reported revenues of €12.8bn. This is an increase of 4.5% on the same period in 2018. Its operating profit fell by 33.3% to €572m, when compared to €806m of H1 2018, impacted by low interest rates and the ongoing decrease in mail volumes. Net profit decreased to €474m, a 25.5% decrease in comparison to H1 2018.

The growth of total revenues from €12.2bn in H1 2018 to €12.8bn is mostly attributed to the performance of the Services-Mail-Parcels business unit. This is due primarily due to the consolidation of Asendia but also due to acquisitions in the Silver economy, and to a lesser extent in the Digital Services business unit.

GeoPost, the group’s international division, has announced an agreement with shareholders of BRT, in which it has already held a 37.5% stake since 2017. Subject to the approval, GeoPost shall acquire an 85% stake in BRT, the leading express parcel operator in Italy.

In terms of business units. The Services-Mail-Parcels unit saw revenues increase by 6.1% to €6.1bn. Operating profit for Services-Mail-Parcels decreased by 24.0% to €289m, partly due to the fall in traditional mail.

GeoPost’s revenues grew by 7.2% to €3.7bn. GeoPost has implemented a price increase policy in certain countries, boosting revenue with volume growth of 2.3% (638m parcels). Most geographic areas have posted a positive change in organic revenue, in particular the United Kingdom (+6.4%), Germany (+5.9%) and France (+5.8%).  GeoPost’s operating profit was down 7.5% to €193m. GeoPost blamed the slowing of its operations on the financial difficulties Europe is subject to in the face of Brexit as well as pressures on subcontracting costs in certain countries.

Against the backdrop of a difficult macroeconomic environment, La Poste expects moderate organic growth of its revenue over remainder of 2019.

Source: La Poste