Last Mile Brief 10/11: InPost Q3 results show year-on-year increase in parcel volumes
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InPost Group has announced it delivered 210.4 million parcels in Q3 2023, which represents an 18% increase compared to the same period the year before.
In Poland, where InPost Group was founded, the increase was 13% year-on-year.
In its Q3 results statement, InPost said it had continued to expand its network and now has 61,873 out-of-home parcel locations across Europe.
In the UK, InPost achieved profitable quarter in terms of Adjusted EBITDA, thanks to “unlocking volume growth, a favourable product mix and continued increase in network coverage. Parcel volumes grew by 128% year on year (YoY) to 13.4 million.”
French subsidiary Mondial Relay also witnessed volume growth of 10% YoY, driven by B2C volumes and “increasing popularity of the expanding APM network among consumers”.
According to the parcel locker giant, its financial highlights are as follows:
- In Q3 2023, the Group achieved a remarkable growth in revenue, reaching PLN 2,067.2 million and marking a 22.3% increase YoY.
- Group Adjusted EBITDA reached PLN 639.4 million, with an increase of 40.3% YoY, and an Adjusted EBITDA margin of 30.9%. This was a result of enhanced profitability in Poland and the UK achieving positive adjusted EBITDA at the end of the quarter.
- Group EBIT was up by 74.9% YoY, and EBIT margin increased to 16.0% in Q3 2023 vs 11.2% a year earlier.
- In Q3 2023, InPost achieved positive Free Cash Flow (FCF) of PLN 310.9 million at a Group level (49% FCF/adjusted EBITDA).
- The Group net leverage decreased to 2.6x as of Q3 2023 vs 3.2x as of 2022 YE.
Moreover, the company listed the following operational highlights:
- Group parcel volumes reached a 210.4 million, representing a significant YoY increase of 18%. Both Poland and InPost’s international markets contributed to this growth, recording YoY increases of 13% and 28% respectively.
- The Group’s total network of out-of-home points reached 61,873, and the number of APMs amounted to 32,943 (+25% YoY). In Q3, the Group deployed 1,500 new APMs, with over 60% of those added outside of Poland.
Commenting on the results, Rafał Brzoska, Founder and CEO of InPost, said:
“Once again InPost has achieved remarkable growth. This has been the result of our strategic vision and hard work of our teams, both in Poland and in our international markets. During this quarter, the expansion of our out-of-home network, which reached over 60,000 points, combined with the clear appreciation from our customers, reflected on an impressive increase in our profitability, allowing us to record a +40% Adjusted EBITDA growth YoY.”
“I’m particularly proud of the success that we have achieved in the UK. InPost is now the #1 APM network in this market and, during the last quarter, we achieved a positive Adjusted EBITDA, delivering on the promise we made to our investors earlier this year. While we celebrate these results in the UK, we look ahead to our next objective to establish a strong presence in the UK’s B2C market.”
Regarding the outlook for 2023 as a whole, InPost stated:
“The InPost Group expects to end 2023 with an increased share in key markets (Poland, Mondial Relay markets and the UK). Our Adjusted EBITDA margin in Poland is expected to visibly expand in the FY 2023 compared to 2022. In Mondial Relay we will see margin contraction vs FY2022 as a result of continued investment into network capacity and market share gains as well as price dilution while managing rising costs due to labour inflation and investment into scale. In the United Kingdom, we expect continued positive adjusted EBITDA profitability for the remainder of 2023 and to be profitable on a full-year basis in 2024. At the end of 2023, the Group expects positive cash flow (FCF) and to keep net leverage in the Q4 2023 visibly reduced vs 2022 YE.”