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Performance of the Parcel & Logistics division varied by region
The business development of Austrian Post during 2015 was positive, in line with the trends prevailing in the first nine months of the year. Group revenue rose by 1.6% from to €2,401.9 million in 2015.
The development of the individual divisions also corresponds to business development in the preceding quarterly periods. The Mail & Branch Network Division reported a 0.9% increase in revenue, to €1,501.7 million in the 2015 financial year. Revenue of the Parcel & Logistics Division climbed to €900.2 m in 2015, up 2.9% from the prior-year figure.
In terms of volumes generated by the Mail & Branch Network division, the volumes in the Letter Mail business showed a 4.0% decline, whereas total volumes in the Direct Mail and Media Post segment rose by 1.0%. Branch Services revenue remained stable in 2015 compared to the previous year.
The development of the Parcel & Logistics division varied from a regional perspective. The outstanding logistics and service quality of Austrian Post was the basis for a volume increase of 8.0% to 80.0 million parcels on the Austrian market. In Austrian Post’s international markets, the parcel business developed positively in South East and Eastern Europe, whereas revenue and earnings development in Germany (trans-o-flex) remained below expectations.
Operating EBIT before special effects improved by 2.6% to €198.0 million, an upward trend which reflects developments over the first three quarters of the year. Reported EBIT in 2014 totalled €196.9 million. Adjusted to take account of special effects recognised in 2014, comparable earnings were €192.9 million. The sale of Austrian Post’s former corporate headquarters had increased 2014 earnings by €62.4 million in contrast to the earnings reduction of €58.4 million related to special effects from impairment losses and structural measures.
EBIT of Austrian Post for the 2015 financial year was also negatively impacted by special effects, which consisted principally of two items. Firstly, impairment of €131.9 million was reported, most of in connection with the sale of and structural measures for the subsidiary trans-o-flex, for which an impairment loss on goodwill and assets (non-cash) of €125.8 million was recognised. Secondly, the consolidated financial statements of Austrian Post for 2015 contain a positive special effect of €23.0 million resulting from claims related to non-wage costs for civil servants paid in previous periods. In aggregate, EBIT reported by Austrian Post in 2015 amounted to €89.0 million, whereas the profit for the period (net profit) was €142.2 million, or €71.6 million after special effects.
Group free cash flow before acquisitions and securities totalled €178.3 million in 2015, ahead of the comparable figure of €151.7 million in 2014. This solid cash flow comprises a good basis for Austrian Post to finance its future investments and dividends.