PostNL N.V. (TNTFF) Q4 2024 Earnings Call Transcript

2025-02-24 18:17:06 ET

PostNL N.V. (TNTFF)

Q4 2024 Earnings Conference Call

February 24, 2025 05:00 AM ET

Company Participants

Inge Laudy - Manager, Investor Relations

Herna Verhagen - Chief Executive Officer

Pim Berendsen - Chief Financial Officer

Conference Call Participants

Michiel Declercq - KBC Securities

Marc Zwartsenburg - ING

Marco Limite - Barclays

Henk Slotboom - The Idea

Presentation

Operator

Good morning ladies and gentlemen. Welcome to the PostNL Q4 Full Year 2024 Results Call. At this moment, all participants are in a listen-only mode. And after the presentation, there will be an opportunity to ask question.

Now I would like to hand over the conference call to Ms. Inge Laudy, Manager Investor Relations. Please go ahead madam.

Inge Laudy

Thank you, and welcome to all of you. This morning we have published our Q4 and full year results, and we will now explain this to all of you. With me in the room are Herna Verhagen, our CEO; and Pim Berendsen, our CFO. Herna will present the 2024 results to you. And after that Pim will take over and he will elaborate on our strategy and outlook for 2025. Afterwards Pim and Herna will answer your questions.

Herna over to you for your last full year results.

Herna Verhagen

Thanks, Inge, and welcome to you all. Let's start with the key takeaways for 2024. A few elements on which we are very proud for the year 2024 and achieved with relentless efforts is the favorable NPS where we score strong -- have a strong position versus competition, of course, well-executed cash and balance sheet management.

And I think with all the changes we saw in trends, we improved our efficiency and our capacity delivering €41 million of cost savings within our Mail division and €35 million within Parcels. Of course, organic costs kept increasing. But with the smallest gap in recent year, it's mitigated by higher prices and we even further improve in the year 2025.

Our leverage ratio is below 2, meaning we propose a dividend of €0.07 in the AGM. Of course, €53 million of normalized EBIT is unsatisfactory. The main driver within Parcels is the shortfall -- of the shortfall result is the margin pressure due to the acceleration in client concentration.

Our top 20 customers in Q4 2024 did 60% of our volume, where a year earlier it was lower than 50%. So that is increasing rapidly. Within that, of course, international customers grew much faster than the domestic customers. That's a trend we saw also in the other quarters.

The second big change is consumer behavior. People are ordering much later than they did in the past. So they wait, of course, for the big discounts, and then they start ordering....

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