La Poste groupe first-half 2023 year results
La Poste steers through a difficult first half of the year, limiting the impact on its results
Revenue up 4% to €17.1bn
Attributable net profit steady, at €0.5bn, and at €0.7bn excluding material non-recurring items
“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
Consolidated financial performance
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.
Significant events in first-half 2023
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.