Secondquarter 2022results
Analystcall
DirkTirez,CEO
PhilippeDartienne,CFO
August5th,2022
Investor presentation
Interim financial report 2Q22
Financial Calendar
09.11.2022 (17:45 CET)
Quarterly results 3Q22
More on bpostgroup.com/investors
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2Q22
Disclaimer
This presentation is based on information published by bpost group in its Second Quarter 2022 Interim Financial Report, made available on August 4th, 2022 at 5.45pm CET on bpostgroup.com/investors. This information forms regulated information as defined in the Royal Decree of November 14th, 2007. The information in this document may include forward- looking statements1, which are based on current expectations and projections of management about future events. By their nature, forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other factors because they relate to events and depend on circumstances that will occur in the future whether or not outside the control of the Company. Such factors may cause actual results, performance or developments to differ materially from those expressed or implied by such forward-looking statements. Accordingly, no assurance is given that such forward-looking statements will prove to have been correct. They speak only as at the date of the Presentation and the Company undertakes no obligation to update these forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements. This material is not intended as and does not constitute an offer to sell any securities or a solicitation of any offer to purchase any securities.
1 as defined among others under the U.S. Private Securities Litigation Reform Act of 1995
Highlights of 2Q22 | 2Q22 |
Second quarter exceeds initial guidance. Results supported by resilient mail revenues, growth at Radial NA, and implementation of management actions to mitigate unfavorable macro-economic environment and support long-term growth
Group operating income
€ 1,035.5m
Group adjusted
EBIT
€ 82.6m
8.0% EBIT margin
down -22.5% compared to high comps of 2Q21
Belgium
€ 62.8m
11.8% EBIT margin
- Total operating income at € 531.8m (-3.1%1)
- underlying volume decline of
-7.5% mitigated by positive mail price/mix impact
- parcels volumes -12.9% against high comps (or -2.9% excl. Amazon impact)
- Stable OPEX1 driven by (i) 4 recent salary indexations mitigated by FTEs reduction, (ii) higher energy costs and (iii) higher recoverable
VAT
E-Logistics Eurasia
€ 7.1m
5.0% EBIT margin
- Total operating income at € 141.7m (-16.9%)
- continued expansion of Radial EU and Active Ants (+12.8%) offset by
- ongoing pressure on Asian cross-border and Dyna volumes
- Lower OPEX (-10.3%) from
(i) lower volume at Cross-border and Dyna, partly offset by (ii) inflation and (iii) e-com logistics' growth and expansion costs - Decline in EBIT margin q/q due to different product mix in cross- border volumes for destination BE
E-Logistics N. Am.
€ 18.1m
4.8% EBIT margin
-
Total operating income at
€ 378.6m (+29.4%2, or +14.6% at constant exchange rate), reflecting
Radial's growth (+18.3%) driven by customers launched in 2021. - Sharp EBIT uplift with improved margin, mainly thanks to Radial's contribution
3 | 1 | Excluding impact of Ubiway Retail (UBR) sold on February 28th, 2022 | 2 Excluding impact of The Mail Group (TMG) sold on August 5th, 2021 |
When including deconsolidation impact: -8.7% in Total operating income (UBR 2Q21: €33.9m) and -5.6% in OPEX (UBR 2Q21: €34.4m) | When including deconsolidation impact: +22.2% in Total operating income (TMG 2Q21: €17.2m) | ||
These results were obtained despite the adverse | Macro-economic |
macro-economic environment with inflation further accelerating
Consumer confidence slightly recovered in Belgium
Feb-22Mar-22Apr-22May-22Jun-22 1
Online retail sales in Belgium improved in May
Feb-22Mar-22Apr-22May-22
Inflation has further accelerated in 2Q22
8,6%
9,7% 9,1%
-10 | -14 | -13 | -11 | ||
-16 | |||||
-21 | |||||
-30 | -24 | -22 | -24 | ||
-8%
-5%
-9%-11%
5,4%
1,6%
-39 | -47 | |
-48 | -50 |
- For the third consecutive month, the consumer confidence indicator in Belgium continued to recover in June (-11 vs. -16 in March), contrasting with neighbouring countries in 2Q22
- Consumer confidence nevertheless remains below last year's levels and slightly fell back (BE) or deteriorated further (NL/EU) in July
BE NL EU
-13%
-17%-17%-16%
y/y online retail sales evolution (deflated turnover)
- In Belgium, decline in online retail sales improved to -5% y/y in May from -16% in April, while showing a +10% growth m/m
- At EU level, m/m sales slightly improved in May
-
In US, online retail sales continued to grow y/y, while m/m sales stabilized since February
BE EU
2Q21 | 3Q21 | 4Q21 | 1Q22 | 2Q22 |
- Belgium's annual inflation rate climbed to 9.7% in June 2022 from 8.3% in March, the highest reading since October 1982
- Global recession risks arise as high inflation hurts household's disposable income and discretionary retail spend
BE EU US
4 | Sources: Statbel, Eurostat, Census Bureau |
Key financials 2Q22
€ million
Total operating income
Operating expenses
EBITDA
Depreciation & Amortization
EBIT
Margin (%)
Financial result
Profit before tax
Income tax expense
Net profit
FCF
Net Debt at June 30
Capex
Average # FTEs and interims
1 Unaudited figures
2Q21 1,037.9 866.5 171.4 68.0 103.4 10.0% -4.1 99.3 26.9 72.4 -60.9489.4 28.5 38,221
Reported | ||
2Q22 | ||
1,035.5 | ||
884.8 | ||
150.7 | ||
71.2 | ||
79.5 | ||
1 | ||
7.7% | ||
2 | 14.2 | |
92.6 | ||
1 | 24.7 | |
67.8 | ||
3 | ||
4 | -141.3 | |
572.8 | ||
39.5 | ||
38,086 |
2Q21 1,037.9 866.5 171.4 64.8 106.6 10.3% -4.1 102.5 27.6 74.9 -60.7489.4 28.5 38,221
Adjusted | 1 | |
2Q22 | ||
1,035.5 | ||
884.8 | ||
150.7 | ||
68.1 | ||
82.6 | ||
1 | ||
8.0% | ||
2 | 14.2 | |
96.8 | ||
1 | 25.5 | |
71.4 | ||
3 | ||
4 | -137.9 | |
572.8 | ||
39.5 | ||
38,086 |
% ↑ -0.2% 2.1% -12.1% 5.2% -22.5%
- -5.5% -7.7%-4.7%127.2% 17.1% 38.7% -0.4%
2Q22
- Amortization and impairments of intangibles recognized during PPA are adjusted, leading to increase in EBIT (€ +3.2m) and income tax (€ +0.7m)
- Net Financial result increase mainly due to lower non-cash financial charges related to IAS 19 employee benefits, in line with higher discount rates
- Remeasurement of assets held for sale at fair value less costs to sell:
- Ubiway Retail: € +1.0m
- bpost bank: € +0.2m
- Adjusted FCF excludes the cash Radial receives on behalf of its customers for performing billing services
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Bpost SA published this content on 04 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2022 19:37:09 UTC.