Last Mile Brief 09/05/2023: PostNL records “better than expected” parcel volumes in Q1 2023

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PostNL has issued its Q1 2023 results, declaring a 78% EBIT year-on-year decline. The company also reported a 6.5% parcel volume decline, though this has been described as better than expected.

In a press release summarising the results, Herna Verhagen, CEO of PostNL, talked up the postal operator’s “adaptive measures” initiated last year, including optimisation of routes, staff and fleet and tight control of indirect costs. Vehagen added this process has “continued to contribute” to PostNL’s results.

The CEO also spoke of how the actual volumes at Parcels developed favourably compared to the company’s expectations, both domestically and internationally, especially in March.

“Together with good operational leverage, this resulted in a performance that came in slightly better than we had anticipated. Our cross-border activities continued the positive trend visible since late 2022,” said Vehagen.

The PostNL CEO added:

“During the quarter we also worked hard to further detail our additional plans for the reduction of 200-300 FTEs in overhead, mainly at Parcels. These preparations are progressing according to plan, with expected annual savings of around €25 million set to become visible in 2024. Overall, we are satisfied with the start of year, which has shown the positive effect from the necessary steps taken to mitigate the impact of the macroeconomic situation and inflationary pressure on our volumes and costs. In the current economic environment, that continues to be volatile and uncertain, we are on track to deliver our outlook for 2023 normalised EBIT of between €70 million and €100 million.”