CTTOF - CTT - Correios De Portugal S.A. (CTTPY) Q4 2023 Earnings Call Transcript
2024-03-20 09:58:06 ET
CTT - Correios De Portugal, S.A. (CTTPY)
Q4 2023 Earnings Conference Call
March 20, 2024 05:00 AM ET
Company Participants
Joao Bento - Chief Executive Officer
Guy Pacheco - Chief Financial Officer
Joao Sousa - Member of the Board of Directors
Conference Call Participants
Joao Safara - Banco Santander
Joaquin Garcia - JB Capital
Filipe Leite - CaixaBank
Artur Amaro - CaixaBI
António Seladas - AS Research
Presentation
Operator
Hello, and welcome to the CTT Full Year 2023 Results Call. My name is Laura, and I will be your coordinator for today's event. Please note, this conference is being recorded. And for the duration of the call, your lines will be on listen-only. [Operator Instructions]
Today, we have Joao Bento, CEO; and Guy Pacheco, CFO as our presenters.
I will now hand you over to your host, Joao Bento, the CEO to begin today's conference. Thank you.
Joao Bento
Thank you, Laura. Good morning, everyone. Welcome to our 2023 year-end results presentation. While 2023 was another great year for CTT, another growth year with significant contributions Express & Parcels and the Bank as the main contributors for our growth.
I'll start exactly with Parcels. We've delivered for the first time more than 100 million packages during the year in Portugal and Spain, and we've set absolute records of volumes during the peak season in both geographies. Especially, relevant is the fact that we gained significant market share in Spain, which is our main growth geography, with record volumes and significant margin expansion.
Moving to Mail, it's -- we have a significant price increase for the first time not as much as for this year, but significant, and that combined with the mix enabled for what we would call stable Mail revenues. And we've been able to somehow mitigate the pressure on inflation -- on cost by inflation, through new measures on the corporate sector, productivity to enhance margin protection, and we see Mail growing better and better from now on.
Moving to Financial Services and Retail, we -- of course, have a very high -- abnormally high, I should say, level of public debt placement that ended roughly at mid-year, and because the volumes were then forced down by the Treasury. And with those, especially the strict ceilings that were imposed, and also on the interest tax rate, debt placements are restricting demand. We hope that the election will resolve at least the cap very soon. Our commercial focus now has shifted to distribution of insurance and other services to cope with the lower placement of public debt.
And finally, the Bank with very strong growth on all aspects in deposits, in line with the announced strategy, steady growth also on loans, and the bank is moving, well, at very solid steps towards the 2025 targets that have been announced....
CTT - Correios De Portugal, S.A. (CTTPY) Q4 2023 Earnings Call Transcript