The Belgian post office Bpost expects lower turnover and lower profits this year. In a forecast released on Wednesday morning bpostgroup says that it expects to make an operating profit of between 165 million and 185 million euro this year. The lower profit forecasts have come following Bpost’s agreement with the publishers on contracts for the distribution of newspapers. The forecast puts operating profits a third to a quarter lower than they were in 2023.
Previously, the postal services group had not published any forecasts for this year. Now that agreements have been reached with the Flemish and Francophone publishers on newspaper distribution, Bpost Group is able to publish forecasts. bpostgroup’s CEO’s says that the new contracts have “less favourable” terms for his company.
Newspaper distribution will generate around 50 million euros less in revenue in 2024, of which 35 million euros "will translate directly into the ebit (earnings before interest and tax)".
In addition, bpostgroup also faces "continued unfavourable market conditions in North America". Customers leaving Bpost could not yet be offset by revenue from new customers, Mr Peeters said. "We are focusing there on productivity gains and cost savings, which will have an immediate impact on profitability."
Turnover
For the year as a whole, bpostgroup expects a "slight decrease" in turnover. In 2023, turnover was close to 4.3 billion euro. Adjusted EBIT (earnings before interest and tax) will be between 165 and 185 million euro. This compares with 248.5 million euro in 2023.