Rome, 6 Nov 2024 11:25
RECORD NINE MONTH GROUP REVENUES, ADJUSTED EBIT AND NET PROFIT
9M-24 REVENUES1 AT €9.2BN, 8.0% Y/Y UNDERLYING2 GROWTH (€3.1BN IN Q3-24, +9.6% Y/Y) CONFIRMING THE ROLE AS ITALY’S LEADING PLATFORM COMPANY
9M-24 ADJUSTED3 EBIT AT €2.3BN, 17.8% Y/Y UNDERLYING2 GROWTH (€789M IN Q3-24, +46.4% Y/Y), WITH EFFECTIVE COST DISCIPLINE MITIGATING INFLATION IMPACT, WHILE SUPPORTING GROWTH
9M-24 NET PROFIT AT €1.6BN (€569M IN Q3-24)
ALL BUSINESS UNITS CONTRIBUTING TO REVENUE GROWTH
MAIL, PARCEL & DISTRIBUTION REVENUES AHEAD OF PLAN THANKS TO DOUBLE-DIGIT GROWTH IN PARCEL AND RESILIENT MAIL REVENUES
SOLID FINANCIAL SERVICES REVENUES SUPPORTED BY STRONG NII AND POSITIVE COMMERCIAL TRENDS ACROSS PRODUCTS
TFAs UP €12BN YEAR TO DATE SUPPORTED BY INVESTMENTS PRODUCTS AND RESILIENT RETAIL DEPOSITS
IMPROVING LIFE NET INFLOWS AND SUSTAINED GROWTH OF PROTECTION INSURANCE VOLUMES
POSTEPAY SERVICES REVENUES1 DRIVEN BY CARD AND DIGITAL PAYMENTS, CONFIRMING LEADERSHIP IN E-COMMERCE, DEMONSTRATING THE EFFECTIVENESS OF THE POSTEPAY EVERYDAY ECOSYSTEM
9M-24 REVENUES1 AT €9.2BN, 8.0% Y/Y UNDERLYING2 GROWTH (€3.1BN IN Q3-24, +9.6% Y/Y) CONFIRMING THE ROLE AS ITALY’S LEADING PLATFORM COMPANY
9M-24 ADJUSTED3 EBIT AT €2.3BN, 17.8% Y/Y UNDERLYING2 GROWTH (€789M IN Q3-24, +46.4% Y/Y), WITH EFFECTIVE COST DISCIPLINE MITIGATING INFLATION IMPACT, WHILE SUPPORTING GROWTH
9M-24 NET PROFIT AT €1.6BN (€569M IN Q3-24)
ALL BUSINESS UNITS CONTRIBUTING TO REVENUE GROWTH
MAIL, PARCEL & DISTRIBUTION REVENUES AHEAD OF PLAN THANKS TO DOUBLE-DIGIT GROWTH IN PARCEL AND RESILIENT MAIL REVENUES
SOLID FINANCIAL SERVICES REVENUES SUPPORTED BY STRONG NII AND POSITIVE COMMERCIAL TRENDS ACROSS PRODUCTS
TFAs UP €12BN YEAR TO DATE SUPPORTED BY INVESTMENTS PRODUCTS AND RESILIENT RETAIL DEPOSITS
IMPROVING LIFE NET INFLOWS AND SUSTAINED GROWTH OF PROTECTION INSURANCE VOLUMES
POSTEPAY SERVICES REVENUES1 DRIVEN BY CARD AND DIGITAL PAYMENTS, CONFIRMING LEADERSHIP IN E-COMMERCE, DEMONSTRATING THE EFFECTIVENESS OF THE POSTEPAY EVERYDAY ECOSYSTEM
***
- 9M-24 GROUP REVENUES AT €9.2BN, +8.0% Y/Y UNDERLYING2 GROWTH (€3.1BN IN Q3-24, +9.6% Y/Y GROWTH):
- MAIL, PARCEL & DISTRIBUTION EXTERNAL REVENUES AT €2.8BN IN 9M-24, +1.5% Y/Y (€909M IN Q3-24, +5.8% Y/Y).
- FINANCIAL SERVICES GROSS REVENUES AT €4.7BN IN 9M-24, +4.4% Y/Y (€1.6BN IN Q3-24, +13.5% Y/Y).
- INSURANCE SERVICES EXTERNAL REVENUES AT €1.2BN IN 9M-24, +7.3% Y/Y (€399M IN Q3-24, +7.8% Y/Y)
- POSTEPAY SERVICES EXTERNAL REVENUES1 AT €1.2BN IN 9M-24, +10.4% Y/Y (€396M IN Q3-24, +6.0% Y/Y).
- 9M-24 TOTAL COSTS4 AT €7.0BN, UP 4.6% Y/Y (€2.3BN IN Q3-24, UP 1.6% Y/Y):
- 9M-24 ORDINARY HR COSTS5 AT €4.1BN, UP 3.1% Y/Y (€1.3BN IN Q3-24, UP 2.2% Y/Y), REFLECTING THE SALARY INCREASES OF THE PREVIOUS AND NEW LABOUR AGREEMENTS, AS WELL AS HIGHER VARIABLE COMPENSATION REWARDING STRONG COMMERCIAL RESULTS.
- 9M-24 NON-HR COSTS4,6 TO €3.2BN, UP 7.0% Y/Y (€1.1BN IN Q3-24, +7.9% Y/Y) AS A RESULT OF HIGHER BUSINESS VOLUMES WHILE EMBEDDING INFLATION IMPACT.
- 9M-24 ADJUSTED3 EBIT AT €2.3 BILLION, 17.8% Y/Y UNDERLYING2 GROWTH (€789M IN Q3-24, +46.4% Y/Y).
- 9M-24 NET PROFIT AT €1.6BN, 19.5% Y/Y UNDERLYING2 GROWTH (€569M IN Q3-24, +48,9% Y/Y).
- GROUP CLIENT TFAs REACHED €593BN, UP €12BN FROM DECEMBER 2023: €3.9BN POSITIVE NET FLOWS IN INVESTMENT PRODUCTS (INCLUDING MUTUAL FUNDS AND LIFE INVESTMENTS & PENSION). IMPROVING POSTAL SAVINGS FLOWS Y/Y, SUPPORTED BY SUCCESSFUL NEW COMMERCIAL INITIATIVES, WITH €7.0BN INFLOWS OF PREMIUM PRODUCTS.
- STRONG CAPITAL POSITION: BANCOPOSTA TOTAL CAPITAL RATIO AT 24.3% (OF WHICH CET1 RATIO AT 20.8%), LEVERAGE RATIO AT 3.3% AND POSTE VITA GROUP SOLVENCY II RATIO AT 322%, MATERIALLY ABOVE MANAGERIAL AMBITION OF AROUND 200% THROUGH THE CYCLE.
1) Revenues and costs are restated net of commodity price and pass-through charges of the energy business.
2) Underlying growth calculated excluding the impact of sennder Capital Gain (“CG”), Active Portfolio Management (“APM”), systemic charges estimate related to insurance guarantee fund and 2023 one-off bonus. sennder CG equal to €109m booked in Q2-23. APM impact on Revenues equal to €168m in 9M-23 and €16m in 9M-24. APM revenues are accounted for 100% in Financial Services, EBIT from APM is accounted for c.80% in Mail, Parcel & Distribution (through distribution/intersegment revenues) with the remaining c.20% in Financial Services. Systemic charges estimate related to insurance guarantee fund equal to €56m in 9M-24 and €74m for FY-24. 2023 one-off bonus cost equal to c. €91m in 9M-23.
3) Adjusted excluding systemic charges estimate related to the insurance guarantee fund, equal to €56m in 9M-24 (€12m in Financial Services and €44m in Insurance Services) and 0 in 9M-23, and to €19m in Q3-24 (€4m in Financial Services and €15m in Insurance Services) and 0 in Q3-23, and costs and proceeds of an extraordinary nature equal to zero in all relevant periods.
4) Numbers are restated net of commodity price and pass-through charges of the energy business.
5) Before the application of IFRS 17.
6) Excluding other non-HR costs. Numbers are restated net of commodity price and pass-through charges of the energy business.
POSTE ITALIANE CONFIRMS ITS ROLE AS PILLAR FOR COUNTRY’S SOCIO-ECONOMIC DEVELOPMENT AND GREEN TRANSITION
KEY ACHIEVEMENTS IN Q3-24:
- Polis Project for social and territorial cohesion. As of September 30, Poste Italiane has completed the renovation and technological upgrade of 2,318 Post Offices, exceeding the milestone set for 2024 ahead of schedule. Approximately 23,000 public administration services have been delivered to citizens; among these, the passport requests can be made in 212 small municipalities and 4 large cities. A total of 47 co-working sites across the country have been already completed.
- Accelerating emissions reduction in logistics towards carbon neutrality by 2030. As of 30 September, Poste Italiane’s low-emissions fleet includes 27,900 vehicles, achieving, ahead of schedule, the Fleet Renewal Plan target of 27,800 eco-friendly units by end of 2024. Following the signing of the Letter of Intent announced in August, the agreement with Enilive is now underway, aimed at providing a strong boost to the reduction of the Group’s carbon footprint. Through this collaboration, Poste Italiane’s fleet and delivery partners will be able to refuel with HVOlution biodiesel at more than 1,000 Enilive service stations. Additionally, Poste Italiane will have access to Sustainable Aviation Fuel (SAF) for air transport.
- Awarded ‘Best in D&I’ by Fortune Italia. Poste Italiane stands out for its concrete commitment to diversity and inclusion policies, contributing to create a more equitable and inclusive workplace where people can thrive.
- Expanded the offering of sustainable investment products (pursuant to art.8 of EU Regulation 2019/2088 – SFDR). Poste Vita launched the class-I Life insurance investment product ‘Poste Prospettiva Valore Gold IV’ and the multiclass product ‘Poste Progetto Obbligazionario Bonus’.
- Poste Italiane reaffirms its leadership in ESG practices, achieving the Advanced classification in Moody's Analytics' ESG overall score for the third consecutive year, with a score of 79 out of 100. The company also maintains its 'AA' rating from MSCI. Additionally, its Ecovadis (Platinum - Top 1%) sustainability score has improved by 5 points, reaching 89 out of 100, thanks to its ongoing commitment to the environment, human rights and fair labor practices.
The Board of Directors of Poste Italiane S.p.A. chaired by Silvia Maria Rovere, met today and approved the 9M-2024 Financial Results (unaudited).
Matteo Del Fante, Poste Italiane Chief Executive Officer commented: “Today we have yet again reported another strong set of results, further demonstrating the ability of our unmatched platform company to deliver strong and sustainable profitability and cash generation, with solid performance across all segments and positive trends confirmed in Q3-24.
We’ve continued generating profitable growth year-to-date, with an Underlying revenue growth of 8% in the first nine months. Focusing on revenues, at €9.2 billion, they are the best nine-month revenue figure we have ever reported. Cost discipline remains a core focus as we continue to successfully mitigate inflationary impacts, while investing in business growth.
In the first nine months of 2024, both Adjusted EBIT and net profit are the highest we ever reported in the first nine months of a year at €2.3 billion and €1.6 billion, respectively, with a year-on-year Underlying growth of close to 20%.
Mail, Parcel & Distribution recorded nine-month revenues of €2.8 billion, driven by double-digit parcel volume growth and resilient mail revenues.
In Financial Services, revenues were at over €4 billion in the nine months, driven by strong NII and positive commercial trends across products.
Insurance Services revenues were up 8% in the quarter and 7% in the nine months, supported by a resilient Life business and a fast growing Protection business.
Postepay Services posted record top-line results for the nine months at €1.2 billion, bolstered by our e-commerce leadership consolidating the effectiveness of the Postepay everyday ecosystem.
As always, we remain focused on continuing to deliver, as we progress on the execution of the Connecting Platform business plan.
We are further strengthening our upgraded full-year 2024 Adjusted EBIT guidance of €2.8 billion with a net profit guidance of €2.0 billion. Our strong and sustainable financial performance and cash generation allow us to generously reward our shareholders while maintaining a rock-solid capital position. As a result, we will be paying an interim dividend of 33 cents per share, equivalent to €427 million euro which is up 39% on last year, in line with full-year 2024 Net Profit guidance of €2 billion and the new pay-out based dividend policy.
Our strongest asset is our dedicated employees with their invaluable contributions; their hard work and professionalism are essential to the continued success we are seeing in 2024 and we will be continue to see in the future.”
POSTE ITALIANE
Q3 & 9M 2024 RESULTS
Wednesday 6 November 2024 - 15:00 CET
WEBCAST
To attend click here: Poste Italiane Q3 & 9M 2024 Results Webcast
A listen only audio conference is also available: +39 02 8020927
For further information:
Poste Italiane SpA Investor Relations Poste Italiane - Media Relations
Tel. +39 06 5958 4716 Mail: ufficiostampa@posteitaliane.it
Mail: investor.relations@posteitaliane.it www.posteitaliane.it
www.posteitaliane.it
Financial calendar
Next events
20 novembre 2024 - Payment of the interim dividend for 2024.
To see the press release in full version download pdf
