bpost drop in first quarter profits

• 9 May 2022
• Transport / Logistics Services

Belgian bpost has reported a fall in first quarter operating profits of €22.6 million to €90 million (£77 million) in the first quarter of the financial year. Revenues across all operations grew by 1.8% to €1,038.5 million (£888.9m) in the accounting period.

In its Belgian operations, sharp declines in business parcel volumes (-14.8%) and mail volumes contributed to the drop in profits, as did investments in its Eurasia segments.

Dirk Tirez, CEO of bpostgroup: “I am proud of all my colleagues for delivering the first quarter on track and welcome the good results. Our e-commerce logistics activities in North America and in Europe prove to be the key engines of growth. In Belgium, where we are currently facing Amazon’s insourcing, inflationary pressures on costs and demand and the lack of fair competition in the last mile delivery of parcels, Management is intensifying action plans to deliver on the transformation of our operating model. We see the first results of our efforts, but will also be taking additional short-term and medium-term measures to ensure a long-term sustainable future in Belgium.

While the headwinds from inflation, salary indexations, transport and energy costs, and customer confidence bring uncertainty for the following quarters and create a downside risk to our guidance, we leave no stone unturned to continue ambitiously the economic, social and environmentally sustainable transformation journey to an international e-commerce logistics group. We keep on strengthening our core activities by diligently executing the key management priorities and investing in the growth of our businesses.”