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Geopost has recorded a 2.2% year-on-year increase in income during the first of half of 2023, despite a slight 1.6% fall in parcel volumes.
The company says the results were possible “thanks to a set of operational efficiency measures adapting its pricing policy to the environment”.
“This resulted in a slight 2.2% increase in revenue despite industry-wide volume variations. Volumes recorded by Geopost over the first half of the year were down by 1.6% compared to the first half of 2022. Of note, Geopost managed to keep on rolling-out its BtoB to BtoC rebalancing strategy: 57% of volumes were BtoC in the first half of 2023, compared to 56% in the same period in 2022,” said the parcel delivery company, in a press release.
Geopost added that some of business units had demonstrated a “good performance” over the first half of the year, with an increase of their organic turnover such as France (+2,6%), Italy (+5,4%), Poland (+4,1%) and Spain (+4,2%). Others, however, recorded a decline such as the UK (-1.8%), Germany (-4.9%) and Benelux (-1.9%).
Geopost’s operating income amounted to +€74,7 million, down €228 million. At constant scope and exchange rate effects (€20 million), the organic decline was -€208 million.
Geopost also stated that the following significant non-recurring items impacted its operating income:
- As of 30th June 2022, the impairment of DPD Russia assets of -€157 million, and
- As of 30th June 2023, the provisions relating to legal proceedings in progress at its Italian subsidiary of -€162 million and the impairment of Stuart’s assets of €134 million.
Excluding significant non-recurring items, the decrease in Geopost’s operating income is – €70 million at constant scope and exchange rates. According to the company, this mainly reflects the economic slowdown in parcel and express activities in an adverse macro-economic context.
Commenting on the results, Yves Delmas, CEO of Geopost, stated:
“Despite significant headwinds in most of Geopost’s markets, I am satisfied that in the first half of the year, Geopost kept on rolling-out its “Together & Beyond” strategy with determination. In Europe, our business units showed notable resilience in the B2B segment and promising growth in cross-border flows thanks to an enhanced day certain service. And we strengthened our position in strategic segments such as out-of-home and temperature-controlled delivery, which confirm their significant growth potential. I am also proud of the tremendous work achieved by our teams to move the company forward on its decarbonization trajectory. Early 2023, Geopost became the first global parcel delivery company to have both its near and long-term CO2 emissions reduction targets approved by the SBTi, and we launched our own Carbon Calculator to help our customers manage their own carbon emissions. These achievements are significant milestones on our environmental roadmap and reflect our unwavering determination to achieve our net zero ambition.”
