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• Group Operating Income: EUR 1,119 million, an increase of nearly 13% year-over-year.

• Adjusted EBIT: EUR 41.6 million with a margin of 3.7%.

• Domestic Mail Revenue Decline: EUR 28 million, with a 4% year-over-year decline.

• Parcel Revenue: Stable year-over-year, with a volume decline of 2.1% and a positive price mix effect of 2.2%.

• 3PL Revenue: Increased by EUR 165 million overall, with a decline of EUR 32 million excluding Staci's contribution.

• Cross-Border Revenue Decline: EUR 4 million or 4.4%.

• Cash Flow from Operating Activities: EUR 131 million, a decrease of EUR 25 million versus last year.

• Net Cash Outflow from Investing Activities: EUR 26 million.

• Net Cash Outflow from Financing Activities: EUR 59 million.

• Warning! GuruFocus has detected 3 Warning Signs with WBO:BPOS.

Release Date: May 09, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Bpost SA de Droit Public (WBO:BPOS) reported a 13% year-over-year increase in group operating income for Q1 2025, reaching EUR 1,119 million.

• The company's 3PL Europe segment showed positive growth, with Radial and Active sales up 12% year-over-year, driven by international expansion and upscaling activities.

• Staci's performance was in line with expectations, contributing positively to the group's financials despite the IFRIC 21 impact.

• The company is actively expanding its locker network, installing six lockers per day, with higher-than-expected utilization rates.

• Bpost SA de Droit Public (WBO:BPOS) is implementing strategic initiatives to enhance resilience and reliability, including a new organizational structure in Europe and a focus on fast-track client onboarding in the US.

Negative Points

• Operating income decreased by 7% or EUR 73 million when excluding the consolidation impact of Staci, due to contract terminations and volume declines.

• The company faced persistent headwinds in North America, with a 19% revenue decrease in the 3PL North America segment due to contract terminations and lower sales from existing customers.

• A strike in February adversely impacted domestic parcel revenue, resulting in a volume drop of 12% during the month.

• The cross-border segment experienced a 4.4% revenue decline, with challenges in the UK market and volume headwinds in North America.

• The company is facing ongoing challenges with customer confidence and market growth, particularly in Belgium, affecting parcel volume growth expectations.

Q & A Highlights

Q: Can you elaborate on the cost mitigation strategies for Radial given the 19% revenue decline in Q1? A: Chris Peeters, CEO: We reduced our staff by 144 FTEs immediately after the loss of an enterprise-sized client to adjust our cost structure. The only remaining cost we couldn't reduce in the short term was leasing. However, we can quickly align other costs with client revenues in the US context.