PostNL forecasts subdued 2025, says current model 'no longer sustainable'
24/02/2025 06:33
Feb 24 (Reuters) - Dutch postal operator PostNL
PTNL.AS issued a subdued 2025 forecast for its two main
divisions on Monday, citing a challenging market and
unpredictable client concentration due to changing consumer
behaviour.
Its earlier plea for government support was rejected by the
Dutch Ministry of Economic Affairs on Friday, intensifying the
company's challenges after it already warned on 2024 profit in
January.
"The financial performance strongly underlines that the
current business model is no longer sustainable," CEO Herna
Verhagen said in a statement.
Traditional postal services in Europe, some of which are
facing financial pressures, are struggling to keep up with
competition from other parcel locker firms such as Poland's
InPost INPST.AS and Amazon AMZN.O .
PostNL, which delivers parcels and letters across the
Netherlands, Belgium and Luxembourg, said it expected a volume
decline of 8% to 10% at its Dutch mail segment in 2025, while
aiming to achieve cost savings of between 40 million and 45
million euros ($42 million and $47 million).
The postal company sees growth of between 1% and 3% at its
parcel segment this year, lower than the assumed growth of 4% to
5% in the Dutch e-commerce market, it said.
For 2024, it reported an operating profit (EBIT) of 53
million euros, confirming the preliminary reading it gave in
January.
It proposed a dividend of 0.07 euros per share for the year.
($1 = 0.9513 euros)
(Reporting by Johan Bodinier, Alessandro Parodi and Olivier
Cherfan in Gdansk; editing by Milla Nissi)
((Johangeorgesroger.Bodinier@thomsonreuters.com;
alessandroparodi@thomsonreuters.com;
olivier.cherfan@thomsonreuters.com))