PostNL to buy Sandd to address falling mail volumes

PostNL

PostNL increased revenues by 1.7% in 2018 to €2,772m. Parcels revenue totalled €1,555m, with Netherlands Mail accounting for €1,678m of the total figure. Operating income fell 35% to €185m. It made a profit of €33m, though this was down from €148m in 2017.

Herna Verhagen, CEO of PostNL: “Step by step we are realising our strategy of becoming the postal and e-commerce logistics company of choice for customers. In 2018, 48% of our revenue came from activities related to e-commerce, evidencing our transition. In Parcels, we reported record-high volumes during our peak season and operational performance improved on the back of increasing volumes. At the same time, we faced additional capacity costs, partly explained by a tight labour and transport market and increasing IT costs related to further development of our digital services. In Spring, the competitive environment remained fierce, especially in Asia, putting pressure on volume and on margin.”

The group has also announced that it will combine postal networks with rival Sandd. This will give PostNL a near monopoly over the Dutch market.

Verhagen commented: “This proposed transaction will secure the foundation for a sustainable postal service in the Netherlands. Combining the two national postal networks is of vital importance for the postal market in the Netherlands to remain reliable, affordable, innovative and accessible for everyone. It will also serve increased long-term employment security for mail deliverers. This has always been an important objective of our efforts.”

Source: PostNL