Bpost jumps to 5-month highs on lower-than-expected compliance review impact

Bpost SA

25/09/2023 08:25

** Shares in Belgian post carrier Bpost  BPOST.BR  jump over
11% as it reduces expected impact from compliance reviews on its
operating profits
    ** Bpost closes three of four compliance reviews, with
audits revealing malpractices, including possible unlawful
compensation received from Belgium's government, and puts aside
75 mln euro ($79.8 mln) provision for this purpose
    ** However, it cuts the annual negative impact from the
reviews on its EBIT to 10 mln euros (prev. 25-50 mln euros)
based on its own in depth legal and economic assessment
    ** Jefferies says estimated impact is now lower than
expected: "the reduced 10 mln euro adverse EBIT impact would
imply a FY23E EBIT consensus upgrade of c.13%"
    ** KBC Securities says the provision is well below its
original assumption of 112-375 mln euros
    ** "Although the provision and negative EBIT impact are not
yet final ... We do think the outcome of the internal review is
better than what we assumed" - KBC
    ** The shares are heading for their best day in 19 months,
rising back to their mid-April levels
   
($1 = 0.9396 euros)

 (Reporting by Piotr Lipinski)
 ((piotr.lipinski@tr.com))