Austrian Post Reports Growth in Q1 2024

The first quarter of 2024 continued to be characterized by the challenging macroeconomic conditions in the markets of the Austrian Post. High inflation and weak economic impulses negatively affect companies’ willingness to invest and consumer purchasing behavior. On one hand, a decline in traditional retail can be observed, while on the other hand, national and international e-commerce is experiencing growth.

(Wien) The Austrian Post was able to achieve a 15% increase in parcel volumes in Austria in the first quarter of 2024, +6% in Turkey, and +44% in Southeast and Eastern Europe. “In light of the difficult market conditions and inflation-related cost increases, the first quarter of the year has performed very well with an increase in revenue and results,” said CEO Georg Pölzl. The group’s revenues increased by 14.1% to EUR 758.6 million in the first quarter of 2024, showing improvements in all divisions: Revenues in the Mail & Advertising division amounted to EUR 315.6 million (+2.3%) and were characterized by the structural decline in addressed letter volumes and the declining advertising business, but were also positively influenced by tariff adjustments for letters as well as advertising and media mail.

Positive Development in Parcel and Logistics Across All Regions

The Parcel & Logistics division generated revenues of EUR 402.9 million (+23.2%; +16.9% excluding Turkey parcels) with a very positive development in all regions. Revenues from the Branch & Bank division reached EUR 47.2 million (+26.0%), with the interest rate landscape of recent months contributing positively to the division’s revenue.

The results also showed improvement in the first quarter: EBITDA increased by 8.7% to EUR 103.4 million, and earnings before interest and taxes (EBIT) rose by 11.4% to EUR 52.4 million. The Parcel & Logistics division improved by 44.9%, significantly contributing to the increase in results was also the parcel business in Turkey. However, the business performance in Turkey continues to be more influenced by inflation and currency conversion than in other markets. The Mail & Advertising division showed a growth in results of 3.3%, while the Branch & Bank division experienced a decline of EUR 3.5 million due to IT special expenses related to the migration of the core banking systems of bank99. The period result of the Austrian Post was EUR 41.6 million in the reporting period, compared to EUR 32.0 million in the previous year (+30.1%). This results in earnings per share for the first quarter of 2024 of EUR 0.59 (+28.2%).

For the entire year of 2024, in addition to the challenges of the market, it is also necessary to address inflation-driven cost increases. On the revenue side, this will be achieved through new products and services, as well as price adjustments. According to current forecasts, growth in the business year 2024 is expected in the mid-single-digit range. Revenue growth on one hand, but also cost discipline and efficiency on the other hand, are necessary to ensure the targeted stability of the Austrian Post. Solutions are being advanced in both mail and parcel logistics that provide high customer benefits while also enabling efficient and predictable processes. For the year 2024, the Austrian Post expects a result (EBIT) at least at the level of the previous year. A slight increase in results is possible if the current macroeconomic environment in the markets of the Austrian Post persists.

Investment Program Remains a High Priority

In addition to revenue realization and cost discipline, the planned investment program also remains a high priority in 2024. Key areas of investment in the coming years include the expansion of international logistics and e-mobility. For example, by 2030, it is intended to achieve CO₂-free delivery on the last mile in Austria. In total, investments in the range of EUR 140–160 million are expected in 2024 to ensure sustainability and growth.

Photo: © Austrian Post