PostNL: shares fall after new warning
(CercleFinance.com) - PostNL shares fell over 6% in Amsterdam on Monday, after the Dutch postal group announced that it did not expect to achieve its profit forecasts for 2024.
The company said that it expected normalised EBIT of E53m for the past financial year, well short of the target of around E80m announced last November.
This figure is also significantly down on the normalised operating profit of E92m that was achieved in 2023.
Beyond the current difficult environment, PostNL believes that the quality of its financial performance, which it considers far from satisfactory, leads it to believe that its business model is no longer tenable.
While its parcel delivery business remains solid, with growth reaching 10.5% last year, the group believes it is becoming 'urgent' to adjust its Universal Postal Service Obligation (USO) and obtain greater support from the government.
Pointing out that the online retail sector is also changing, with rising costs, a scarcer workforce and greater concentration of its customer base, the company has stated its ambition to expand internationally in order to revive its business.
Further strategic details are expected to be unveiled on 24 February, when the company publishes its final annual results.
In the meantime, the share price fell by 6.3% on Monday morning, bringing its 12-month decline to over 27%, against a backdrop of multiple profit warnings and downgrades of analysts' recommendations.
Copyright (c) 2025 CercleFinance.com. All rights reserved.
The company said that it expected normalised EBIT of E53m for the past financial year, well short of the target of around E80m announced last November.
This figure is also significantly down on the normalised operating profit of E92m that was achieved in 2023.
Beyond the current difficult environment, PostNL believes that the quality of its financial performance, which it considers far from satisfactory, leads it to believe that its business model is no longer tenable.
While its parcel delivery business remains solid, with growth reaching 10.5% last year, the group believes it is becoming 'urgent' to adjust its Universal Postal Service Obligation (USO) and obtain greater support from the government.
Pointing out that the online retail sector is also changing, with rising costs, a scarcer workforce and greater concentration of its customer base, the company has stated its ambition to expand internationally in order to revive its business.
Further strategic details are expected to be unveiled on 24 February, when the company publishes its final annual results.
In the meantime, the share price fell by 6.3% on Monday morning, bringing its 12-month decline to over 27%, against a backdrop of multiple profit warnings and downgrades of analysts' recommendations.
Copyright (c) 2025 CercleFinance.com. All rights reserved.