Rome, 30 Jul 2024 07:00
NEW COLLECTIVE LABOUR CONTRACT SIGNED IN JULY, ENABLING LOGISTICS AND DISTRIBUTION TRANSFORMATION AND PROVIDING ENHANCED VISIBILITY ON THE COST BASE EVOLUTION OVER THE PLAN
H1-24 REVENUES[1] AT €6.2BN, WITH 7.3% Y/Y UNDERLYING[2] GROWTH (€3.1BN IN Q2-24, WITH 8.7% Y/Y UNDERLYING2 GROWTH), DRIVEN BY STRONG PERFORMANCE IN MAIL & PARCEL, NII AND PAYMENTS
H1-24 ADJUSTED[3] EBIT AT €1.5BN, 14.2% Y/Y UNDERLYING2 GROWTH (€782M IN Q2-24, 14.2% Y/Y UNDERLYING2 GROWTH) AND H1-24 NET PROFIT AT OVER €1.0BN (€525M IN Q2-24)
HIGHEST QUARTERLY YEAR-ON-YEAR MAIL AND PARCEL REVENUE GROWTH SINCE LISTING[4]; PARCEL REVENUES BENEFITTING FROM VOLUME GROWTH ON ALL CUSTOMER SEGMENTS; MAIL REVENUES UP THANKS TO FAVOURABLE MIX AND REPRICING ACTIONS
FINANCIAL SERVICES REVENUES DRIVEN BY RECORD NET INTEREST INCOME AND POSITIVE COMMERCIAL TRENDS ACROSS PRODUCTS
TFAs UP €8BN SUPPORTED BY €4BN NET INFLOWS, OF WHICH €2.8BN INVESTMENT PRODUCTS
RESILIENT LIFE INVESTMENTS & PENSION AND SIGNIFICANT GROWTH IN THE PROTECTION BUSINESS
POSTEPAY SERVICES REVENUES1 UP DRIVEN BY CARD AND DIGITAL PAYMENTS, LEADERSHIP IN E-COMMERCE AND SOLID ENERGY BUSINESS GROWTH
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2024 ADJUSTED3 EBIT GUIDANCE UPGRADED TO €2.8 BILLION, DRIVEN BY OUTPERFORMANCE IN MAIL & PARCEL AND NII, SOLID POSTEPAY SERVICES RESULTS AS WELL AS INCREASED VISIBILITY ON NETWORK TRANSFORMATION AND HR COSTS
H1-24 REVENUES[1] AT €6.2BN, WITH 7.3% Y/Y UNDERLYING[2] GROWTH (€3.1BN IN Q2-24, WITH 8.7% Y/Y UNDERLYING2 GROWTH), DRIVEN BY STRONG PERFORMANCE IN MAIL & PARCEL, NII AND PAYMENTS
H1-24 ADJUSTED[3] EBIT AT €1.5BN, 14.2% Y/Y UNDERLYING2 GROWTH (€782M IN Q2-24, 14.2% Y/Y UNDERLYING2 GROWTH) AND H1-24 NET PROFIT AT OVER €1.0BN (€525M IN Q2-24)
HIGHEST QUARTERLY YEAR-ON-YEAR MAIL AND PARCEL REVENUE GROWTH SINCE LISTING[4]; PARCEL REVENUES BENEFITTING FROM VOLUME GROWTH ON ALL CUSTOMER SEGMENTS; MAIL REVENUES UP THANKS TO FAVOURABLE MIX AND REPRICING ACTIONS
FINANCIAL SERVICES REVENUES DRIVEN BY RECORD NET INTEREST INCOME AND POSITIVE COMMERCIAL TRENDS ACROSS PRODUCTS
TFAs UP €8BN SUPPORTED BY €4BN NET INFLOWS, OF WHICH €2.8BN INVESTMENT PRODUCTS
RESILIENT LIFE INVESTMENTS & PENSION AND SIGNIFICANT GROWTH IN THE PROTECTION BUSINESS
POSTEPAY SERVICES REVENUES1 UP DRIVEN BY CARD AND DIGITAL PAYMENTS, LEADERSHIP IN E-COMMERCE AND SOLID ENERGY BUSINESS GROWTH
***
2024 ADJUSTED3 EBIT GUIDANCE UPGRADED TO €2.8 BILLION, DRIVEN BY OUTPERFORMANCE IN MAIL & PARCEL AND NII, SOLID POSTEPAY SERVICES RESULTS AS WELL AS INCREASED VISIBILITY ON NETWORK TRANSFORMATION AND HR COSTS
- H1-24 GROUP REVENUES1 AT €6.2BN, 7.3% Y/Y UNDERLYING2 GROWTH (€3.1BN IN Q1-24, 8.7% Y/Y UNDERLYING2 GROWTH):
- MAIL, PARCEL & DISTRIBUTION EXTERNAL REVENUES AT €1.9BN IN H1-24, 5.7% Y/Y UNDERLYING2 GROWTH (€1.0BN IN Q2-24, 6.8% Y/Y UNDERLYING2 GROWTH).
- FINANCIAL SERVICES REVENUES AT €2.7BN IN H1-24, 7.0% Y/Y UNDERLYING2 GROWTH (€1.4BN IN Q2-24, 8.6% Y/Y UNDERLYING2 GROWTH).
- INSURANCE SERVICES REVENUES AT €827M IN H1-24, +7.1% Y/Y (€430M IN Q2-24, +13.4% Y/Y).
- POSTEPAY SERVICES REVENUES1 AT €761M IN H1-24, +12.7% Y/Y (€382M IN Q2-24, +8.5% Y/Y).
- H1-24 TOTAL COSTS5 AT €4.7BN, UP 6.1% Y/Y (€2.4BN IN Q2-24, UP 8.6% Y/Y):
- H1-24 ORDINARY HR COSTS6 AT €2.8BN, UP 3.6% Y/Y (€1.4BN IN Q2-24, UP 4.2% Y/Y), WITH ONGOING WORKFORCE TRANSFORMATION AND FULLY REFLECTING THE NEWLY SIGNED LABOUR CONTRACT.
- H1-24 NON-HR COSTS6,7 TO €2.1BN, UP 6.6% Y/Y (€1.1BN IN Q2-24, +6.9% Y/Y) AS A RESULT OF HIGHER BUSINESS VOLUMES WHILE EMBEDDING INFLATION IMPACT.
- H1-24 ADJUSTED EBIT3 AT €1.5 BILLION, 14.2% Y/Y UNDERLYING2 GROWTH (€782M IN Q2-24, 14.2% Y/Y UNDERLYING2 GROWTH).
- H1-24 NET PROFIT AT OVER €1.0BN, 14.3% Y/Y UNDERLYING2 GROWTH (€525M IN Q2-24, 12.9% Y/Y UNDERLYING2 GROWTH).
- GROUP CLIENT TFAs REACHED €589BN, UP €8BN FROM DECEMBER 2023.
- STRONG CAPITAL POSITION: BANCOPOSTA TOTAL CAPITAL RATIO AT 23.8% (OF WHICH CET1 RATIO AT 20.3%), LEVERAGE RATIO AT 3.3% AND POSTE VITA GROUP SOLVENCY II RATIO8 AT 297%.
POSTE ITALIANE SUCCESSFULLY CONTINUES ITS SUSTAINABLE GROWTH JOURNEY, CREATING LONG-TERM VALUE FOR ALL STAKEHOLDERS
KEY ACHIEVEMENTS IN Q2-24:
- Poste Italiane is among the top three FTSE MIB companies in the Identity Corporate Index (ICI), the corporate ESG identity index. The assessment has particularly recognised Poste Italiane in the “Manager for the Polis” area, for its significant role in the community and excellence in integrating ESG aspects as a competitive advantage in its strategy.
- Completed the development phase of Poste Italiane’s Green Index, the calculation model for tracking greenhouse gas emissions data, which measures the carbon footprint at each stage of the entire logistics chain. It has been certified by the Smart Freight Centre in accordance with the Global Logistics Emissions Council Framework for Logistics Emissions Methodologies (GLEC Framework).
- Polis project: 1,890 post offices in municipalities with less than 15 thousand inhabitants offer citizens digital access to Public Administration services. 6 co-working spaces (out of 38 completed projects) are already available for private individuals, professionals and start-ups.
- Sustainability: Poste Italiane reduces logistics and real estate environmental impact. The Group’s delivery fleet includes 27,400 low-emission vehicles (of which around 5,900 full electric and 8,500 hybrid); approximately 5,600 electric charging stations have been installed. The number of sites featuring Smart Building solutions has increased to over 2,100, while the total number of installed photovoltaic plants amounts to 366 (covering a total area of around 88,000 square metres).
- Poste Mondo Welfare: participation has increased by 47.5% compared to 2023. The new internally developed platform offers an increasingly wide range of welfare products and services for employees.
- The European Investment Bank (EIB) is financing Poste Italiane with €450 million to promote digitalisation, automation and energy efficiency. The objectives of the financial agreement include: the development of automation and digitalization of logistics processes (two new parcel sorting hubs); migration of software platforms to the cloud, enhancement of physical and digital channels and application of AI tools for automation and security enhancement.
- Poste Vita and BancoPosta Fondi SGR are expanding their offerings with products for more sophisticated and sustainability-conscious clients (pursuant to art.8 of EU Regulation 2019/2088 – SFDR). Poste Vita has launched two class-I Life investment insurance products: ‘Poste Prospettiva Valore Gold III’ and ‘Poste Valore Solidità Più’; BancoPosta Fondi SGR has launched ‘BancoPosta Universo ObbligazionarioPiù’, a mixed bond fund aimed at seizing growth opportunities in global markets.
Yesterday, the Board of Directors of Poste Italiane S.p.A. (“Poste Italiane” or the “Group”), chaired by Silvia Maria Rovere, approved the first half 2024 Financial Results.
Matteo Del Fante, Poste Italiane Chief Executive Officer commented: “Our anti-fragile, phygital business model designed for sustainability has proven itself again with these excellent results. Year-to-date performance continues to be strong in all segments with a further acceleration of positive trends in Q2-24. As always, we remain focused on continuing to deliver, with discipline, as we progress on the execution of the Connecting Platform business plan.
In the first half of 2024, revenues are at over €6.1 billion, up 7% on an Underlying basis excluding the contribution of sennder capital gain and Active Portfolio Management.
Adjusted EBIT in the half, net of estimates related to the insurance guarantee fund, is at €1.5 billion and up 14% on an Underlying basis, with net profit at just over €1 billion.
Our people play an important role and I am very pleased to announce the renewal of a mutually beneficial national labour contract, covering the four-year period from 2024 to 2027, which was finalized in record time and signed last week. On behalf of our Chairwoman Silvia Maria Rovere and General Manager Giuseppe Lasco, I’d like to thank everyone involved in this process, in particular the Labour Unions, for their extremely constructive approach.
The agreement represents a key milestone, as it is crucial in implementing both our logistics business transformation and the new commercial service model for financial services in the Post Offices, providing full visibility on our cost base evolution over the plan.
In Mail, Parcel and Distribution, parcel revenues driven by double-digit volume growth, where we are gaining market shares in all customer segments, while mail revenues benefit from a favourable mix and effective repricing actions.
In Financial Services, revenues were up 9% in the quarter and 7% in the first half on an Underlying basis, driven by record NII since listing and positive commercial trends across products.
In Insurance Services, profitability is improving supported by a resilient Life Investments & Pension along with a fast-growing Protection business.
Postepay Services continues to deliver double-digit growth in the half, thanks to increased card and digital payments and our leadership in e-commerce transactions; the successful energy business is contributing to revenue growth.
The strong first half results, coupled with increased visibility on cost base evolution, support upgrading full-year 2024 Adjusted EBIT guidance to €2.8 billion.
Finally, I want to thank our dedicated employees, whose hard work, commitment and professionalism are key to the strong results we continue to achieve.”
To see the press release in full version download pdf
[1] Revenues are restated net of commodity price and pass-through charges of the energy business. For a full reconciliation of figures, please refer to the section on 'Alternative Performance Measures’.
[2] Underlying growth calculated excluding the impact of sennder Capital Gain (“CG”), Active Portfolio Management (“APM”) and systemic charges estimate related to insurance guarantee fund. sennder CG equal to €109m in Q2-23 and H1-23. APM impact on Revenues equal to €0m in Q2-23 and €168m in H1-23, €(6m) in Q2-24 and €16m in H1-24. Systemic charges estimate related to insurance guarantee fund equal to €37m in H1-24 and to €74m for FY-24.
[3] Adjusted excluding systemic charges estimate related to the insurance guarantee fund.
[4] Excluding the Covid-19 period.
[5] Adjusted excluding systemic charges related to insurance guarantee fund equal to €37m in H1-24.
[6] Before the application of IFRS 17.
[7] Excluding other non-HR costs. Numbers are restated net of commodity price and pass-through charges of the energy business.
[8] Net of foreseeable dividend.
POSTE ITALIANE Q2 & H1 2024 RESULTS
Tuesday 30 July 2024 - 12:00 CEST
To attend click here: Poste Italiane Q2 & H1 2024 Results Webcast
A listen only audio conference is also available: +39 02 8020927
For further information:
Poste Italiane S.p.A. Investor Relations Poste Italiane S.p.A. Media Relations
Tel. +39 06 5958 4716 Tel. +39 06 5958 2097
Mail: investor.relations@posteitaliane.it Mail: ufficiostampa@posteitaliane.it
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Financial calendarNext events
7 November 2024 - Q3 & 9M-24 Group Results presentation.
20 November 2024 - Payment of the interim dividend for 2024, with ex-dividend date 18 November 2024 and record date of 19 November 2024.
