Lower turnover for PostNL as package numbers fall; €4 million profit in Q1

PostNL saw the number of parcels processed decline in the first quarter, as well as the turnover. At the same time, the postal company reduced costs by reorganizing the parcel department and optimizing delivery routes. PostNL itself spoke of a result “beyond its own expectations.”

Turnover for the first months of 2023 amounted to 783 million euros, a decrease of 3 percent compared to a year earlier. The number of processed packages fell by 6.5 percent in that period. After deducting costs, the profit amounted to 4 million euros. That is considerably less than a year earlier when profit was still 34 million euros.

CEO Herna Verhagen is still satisfied. She spoke of a “positive effect of the necessary steps” that the postal company had to take to cut costs. That includes measures to counter inflationary pressures and declining volumes. For example, PostNL is eliminating up to 300 support jobs in its Parcels department. From 2024, all these measures should save around 25 million euros in costs annually.

According to PostNL, the reorganization is progressing according to plan. “We are discussing this with employee participation bodies so that it can quickly become clear where positions should be released,” explained financial director Pim Berendsen. To some extent, this will be a natural progress, he said. He also sees no need to cut more jobs for now.

“All in all, we are satisfied with how the year started,” said Verhagen. According to her, the economic climate remains uncertain, but for now, the company expects to achieve a profit of between 70 million and 100 million euros at the end of 2023. That is the profit before interest and taxes. For this quarter, that profit amounted to 7 million euros.

PostNL traditionally depends on the last quarter of the year, said Berendsen. A relatively large number of parcels and post are sent around the holidays. “For the second quarter of this year, we expect a result in line with last year’s result. We are already ahead of our expectations based on the first quarter, so we are very comfortable that we will meet our target for 2023,” Berendsen said.