Belgium's Bpost lags Q1 profit forecast on N.America weakness (updated)

Bpost SA

03/05/2024 07:50

(Adds details on N.America in paragraphs 4-5, US peer in 6,
details on Belgium in 7-10, outlook in 11)
    By Olivier Cherfan
       May 3 (Reuters) - Belgium's postal operator Bpost
 BPOST.BR  reported quarterly operating profit below
expectations on Friday, as volumes at its North American
logistics business fell in tough market conditions.
    Bpost - which delivers mail and parcels in Belgium and
offers shipping solutions to e-commerce firms in North America,
Europe and Asia - posted a 20% drop in first-quarter adjusted
earnings before interest and tax (EBIT) to 62.1 million euros
($66.6 million).
    That missed analysts' consensus of 69.7 million euros
provided by the company. 
    Adjusted EBIT in its second-biggest business area,
E-Logistics North America, fell 41.3% to 8.8 million euros, hit
by lower volumes at its Radial and Landmark US units. Analysts
were expecting 10.6 million euros.
    "While our Eurasian activities continue their growth path,
our revenues in North America remain under pressure due to
adverse market conditions," CEO Chris Peeters said in a
statement.
    U.S.-based parcel group UPS  UPS.N  last month reported
earnings above expectations and confirmed its full-year outlook,
as cost cuts offset still soft demand for package delivery.
    In Belgium - Bpost's main market where it generates most of
its income - parcel volumes grew 2.9%, while underlying mail
volumes fell 6.7% in the quarter.
    Last week, it signed a delivery agreement with Flemish
newspaper publishers, which covers around 75% of the current
volumes delivered by Bpost.
    "We are doing our utmost to do the same with the
French-speaking editors soon," Peeters said.
    The company has been under pressure due to speculation that
the Belgian government could choose other companies for the
distribution of newspapers and periodicals.
    Bpost had declined to give a full-year EBIT outlook in
March, saying it was still in talks with press stakeholders,
while guiding for stable operating income compared to 2023. It
did not comment on the outlook in Friday's statement.
($1 = 0.9319 euros)

 (Reporting by Olivier Cherfan in Gdansk; editing by Milla
Nissi)
 ((olivier.cherfan@thomsonreuters.com))