“The first-half results reported today for La Poste Groupe demonstrate the ability of La Poste and its multi-business model to stay the course in the face of adverse events affecting its businesses and today’s difficult macro-economic environment. Thanks to the commitment of its postal workers and the support of its shareholders, Caisse des Dépôts and the French State, La Poste Groupe has managed to limit the impact on its results of high inflation, which is weighing heavily on its costs; the economic crisis, which is hampering growth in e-commerce and therefore parcel flows; and the interest rate rise for Livret A savings accounts in the past year, which La Banque Postale is feeling particularly keenly. These challenges mean that we must be even more vigilant in managing our costs and more agile in responding to changes in our environment.
Despite these headwinds, the group is continuing its transformation. Parcels are holding up well in France despite the slowdown in consumer spending, but less so internationally, where volumes are down slightly. La Banque Postale, which is now a major public bancassurance group, continues to expand in asset management with the acquisition of La Financière de l’Echiquier and in the international market with CNP Assurances. Following the incorporation of La Banque Postale’s non-life businesses, CNP Assurances has also seen its strategic model evolve, becoming a full-service insurer. And La Poste is gaining ground in its role as trusted third party, both in the physical world with new postal carrier services and in the digital world with 3 million Digital Identities and 10 million Digiposte digital safes.
Lastly, thanks to La Poste’s commitment to serving society as a whole, the group has maintained its non-financial leadership, once again being ranked number one during the period by Moody’s ESG Solutions – not only in its sector, but in all sectors combined.”
Philippe Wahl, Chairman and Chief Executive Officer of La Poste Groupe
Revenue¹ : €17.1bn
up 4.0% vs first-half 2022 restated for IFRS 17²
up 3.1% vs first-half 2022 restated for IFRS 17 at constant scope and exchange rates (like for like)
Operating profit ³:
€1,166m vs €235m in first-half 2022 restated for IFRS 17
€1,447m excl. material non-recurring items (a), up €167m like for like vs first-half 2022
Attributable net profit:
€461m vs €919m in first-half 2022 restated for IFRS 17
€663m excl. material non-recurring items (b), down €185m like for like vs first-half 2022
Free cash flow⁴ : €(128)m
vs €1,130m in first-half 2022, which included €1,256m relating to a catch-up on dividends for previous years by La Banque Postale (LBP)
Capex (excluding LBP): €638m
vs €498m in first-half 2022
Attributable equity: €22.3bn
vs €21.4bn at 31/12/2022 restated for IFRS 17
Net debt ⁴: €11.3bn
vs €10.2bn at 31/12/2022
Net debt/adjusted EBITDA⁴ ⁵ : 4.9
vs 2.8 at 31/12/2022 restated for IFRS 17
(a) Excluding the impact of material non-recurring items on operating profit (€1,069 million negative impact in first-half 2022 and €281 million negative impact in first-half 2023).
(b) Excluding the impact of material non-recurring items on attributable net profit (€166 million positive impact in first-half 2022 and €202 million negative impact in first-half 2023).
(1): Throughout the press release, “revenue” refers to all of the group’s top line earnings, comprising revenue from industrial and commercial activities plus La Banque Postale’s net banking income (which in turn includes net revenue from CNP Assurances).
(2): The comparative figures for the six months ended 30 June 2022 for income statement and cash flow statement data, and at 31 December 2022 for balance sheet data, have been restated by applying IFRS 17 in order to provide meaningful comparisons with the financial information for the six months ended 30 June 2023, which was prepared after the effective date for IFRS 17. Details of the impacts of IFRS 17 on the group’s comparative financial information are provided in Appendix 1 to this press release.
(3): Operating profits and losses for the group and business lines are presented after the share in net profit/(loss) of jointly-controlled companies throughout this press release.
(4): Definition presented in Appendix 3 to this press release.
(5): Adjusted EBITDA calculated over a rolling 12-month period.
The first half of 2023 was marked by persistently high inflation, weak growth in Europe and the rest of the world, and further rises in interest rates. Against this backdrop:
the structural decline in Mail volumes continued (down 9.7% on first-half 2022); year on year, overall volumes of Parcel deliveries remained more or less stable in first-half 2023, decreasing just 0.9% to 1.2 billion, Geopost volumes edged down 1.6%, and Colissimo volumes increased 2.6%; business at La Banque Postale was resilient in contrasting markets in France and abroad
The group continued to implement its strategic plan, by:
Consolidating its core historical activities and public service missions
Since 1 January, La Poste has revamped its Mail range in order to respond to changing customer behaviours, reduce its carbon footprint and future-proof the universal postal service. After receiving clearance from the European Commission, the new agreement on press delivery, entered into between the French State, press trade associations, Arcep and La Poste – came into force in January.
The group continued to implement its strategic plan, by:
Accelerating the development of growth drivers
Within logistics:
To help meet the goals and challenges of the food and healthcare sectors, Chronopost now has the largest temperature-controlled network of all of France’s transportation carriers, having opened four new hubs in June (€22 million invested). Consequently, Chronofresh and Chronopost Healthcare are seeking to double their volumes within five years. Signing of a memorandum of understanding with CMA CGM in June, aimed at harnessing both groups’ complementary supply chain strengths in the international market (outside France) and reducing their carbon emissions. Announcement in May of the creation of DPD Argentina through a joint venture with TASA Logística, which operates in a large number of South American countries. Strategic review of Stuart and Urby business models.
The group continued to implement its strategic plan, by:
Accelerating the development of growth drivers
Within Bancassurance:
CNP Assurances became a full-service insurer, with the formation of a dedicated hub bringing together all of the group’s insurance activities under the umbrella of CNP Assurances Holding, which is wholly owned by La Banque Postale. Strengthening of the asset management business, with the acquisition, completed in July, of Financière de l’Echiquier, one of France’s leading entrepreneurial asset management companies, and the extension of the partnership between La Banque Postale and Aegon Asset Management until 2035. Continued expansion of CNP Assurances in Brazil, with the completion of acquisitions (purchase of (i) Caixa Seguridade’s stake in CNP Participaçôes and (ii) ICATU’s stake in CNP Capitalização S.A. – “CNP Cap”), raising its interests in these entities to 100%, and creation of the CNP Seguradora brand to market the entities’ products under an open model (i.e., via long-term partnerships, such as with Brazilian postal operator Correios).
Laying the foundations for future growth
in digital services, through Docaposte’s acquisitions early in the year of Maincare (98%), a specialist in digital solutions for hospitals, and Thiqa (80%), an expert in consulting, integration and operation of solutions in the field of digital trust.
In the light of the current geopolitical situation, the global economic outlook remains uncertain. Some indicators nevertheless seem to be steadying, especially inflation, which is beginning to fall, and interest rates, which have stopped soaring. However, the consequences of events in 2022 will continue to be felt in the economy throughout the rest of 2023.
Against this backdrop, the group will press ahead with its strategic plan, “La Poste 2030, committed for you”, with a view to achieving profitable and responsible growth both in France and internationally.
In 2023, La Poste Groupe will continue its transformation for the good of the whole community and remain a socially engaged group, serving global trends and addressing society’s needs as it navigates the environmental and energy, digital, demographic and social transitions ahead.
