04-05-2020

We are experiencing an unprecedented global crisis. Facing these exceptional circumstances, bpost Group is more than ever conscious of the social role it plays by providing a vital link between people and preventing the isolation of the most vulnerable. The considerable efforts made by our employees to guarantee the continuity of bpost Group’s services are not made at the expense of their and our customers’ health and safety. This is of critical importance and our number one priority. We have implemented many measures on the field to protect our employees and our customers.”

First quarter 2020 highlights
Our key priority is to protect the health and safety of our employees and customers.
Group operating income at EUR 934.6m, +3.1% compared with the same period last year and driven by Parcels BeNe and E-commerce logistics growth in both Parcels & Logistics Europe & Asia and North America.
Group reported EBIT at EUR 71.0m. Adjusted EBIT at EUR 75.6m (margin of 8.1%).
Mail & Retail
Total operating income at EUR 500.0m (-5.2%) driven by COVID-19 impact on Advertising mail and on retail and by the deconsolidation of Alvadis.
Underlying mail volume decline at -9.9% driven by cancelled advertising campaigns due to COVID-19.
Reported EBIT at EUR 64.6m. Adjusted EBIT at EUR 65.2m (13.0% margin), down by -29.6% from COVID-19 mail evolution and additional opex to guarantee continuity of service. M&R COVID-19 impact estimated at EUR -14.4m.
Parcels & Logistics Europe & Asia
Total operating income at EUR 213.5m (+8.5%) mainly driven by Parcels BeNe (+19.8%). Significant negative impact in Cross-border business of COVID-19.
Organic Parcels BeNe volumes at +20.5%, higher than +17.9% volume growth observed year-to-date February 2020, and driven by increased online sales since the March 18, 2020 lockdown.
Reported EBIT at EUR 16.2m. Adjusted EBIT at EUR 16.9m (7.9% margin), up EUR 4.5m (+31%) operationally excluding 1Q19 VAT recovery, year-over-year negative evolution of terminal dues settlements and COVID-19. PaLo Eurasia COVID-19 impact estimated at EUR -1.8m.
Parcels & Logistics North America
Total operating income at EUR 261.3m (+14.3%, +11.2% at constant exchange rate), driven by E-commerce logistics, in particular growth at Radial from existing customers and new business signed in 2019.
Reported EBIT at EUR -10.8m. Adjusted EBIT at EUR -7.4m (-2.8% margin), up EUR 0.4m driven by positive evolution of E-commerce logistics, mainly Radial, to a large extent offset by continued margin pressure in International mail. PaLo NA COVID-19 impact estimated at EUR -0.3m.
Total COVID-19 impact on Group EBIT estimated at EUR -16.7m for the first quarter 2020. Excluding this impact, first quarter 2020 results were above expectations as mail volume decline was trending better than guided.
Outlook for 2020 is overruled by COVID-19. Updated full-year guidance will be issued as soon as the full quantitative impact of COVID-19 can be accurately and reliably estimated. bpost Group is not in position to do so to date.
The current dividend policy of minimum 85% of BGAAP net result is suspended. A new dividend policy will be decided by the Board of Directors when the longer term impact of the COVID-19 crisis becomes clear. As a consequence, there will be no announcement tomorrow before market opening regarding a new capital allocation policy.

Source: bpost 

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