EQS-News: Francotyp-Postalia's nine-month figures characterized by declining operating business and sale of freesort

Francotyp-Postalia's nine-month figures characterized by declining operating business and sale of freesort

• Revenue and EBITDA decline as expected
• Net profit and free cash flow significantly increased
• Forecast confirmed on the basis of adjusted prior-year figures

Berlin, November 21, 2024 - Francotyp-Postalia Holding AG (ISIN DE000FPH9000) generated consolidated revenue of EUR 126.8 million in the first nine months of the current financial year, compared with EUR 132.4 million in the same period of the previous year. Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 18.5 million after EUR 19.6 million in the same period of the previous year; the EBITDA margin thus reached 14.6%. Consolidated net income increased to EUR 7.7 million in the first nine months of 2024 compared to EUR 2.0 million in the same period of the previous year, mainly due to the sale of freesort and one-off tax refunds from abroad. Earnings per share (EPS) rose to EUR 0.49 compared to EUR 0.13 in the same period of the previous year. Free cash flow rose to EUR 20.5 million compared to EUR 5.6 million in the same period of the previous year.

The Mail Services area is no longer included in the Group's revenue and EBITDA. freesort was deconsolidated as at September 30, 2024; the previous year's figures have been adjusted accordingly. Following the sale of freesort, the FP Group is focusing on the Mailing & Shipping Solutions and Digital Business Solutions areas with the aim of driving forward the transformation. However, the FP Group must bear annual pro rata administrative costs of around EUR 0.5 million, which can no longer be allocated.

Revenue in the Mailing & Shipping Solutions area fell by 2.7% to EUR 107.3 million compared to EUR 110.2 million in the same period of the previous year. This included negative exchange rate effects of EUR 0.3 million. FP was able to increase revenue in its largest foreign market, the USA. In most European countries, however, revenue declined. Revenue from product sales continued to develop positively, while revenue in the after-sales business from service, consumables and Teleporto was slightly down on the previous year. The environment remains challenging in view of declining mail volumes worldwide. FP is striving for greater harmonization of sales and service processes and is addressing the trend towards a circular economy by increasingly offering a sustainable product range through the use of recycled components or refurbished machines. In this business area, the focus is on stabilizing the topline and increasing efficiency in the cash-flow-strong business model.

Revenue in the Digital Business Solutions division fell by 10.5% to EUR 19.5 million in the reporting period compared to EUR 21.8 million in the same period of the previous year. As in the previous quarters, this particularly affected Output Management, which was once again impacted by declining mail volumes. The implementation of new hardware and software, which was completed at the end of 2023, enabled the range of services to be expanded with greater automation and digitalization of customer processes. This is reflected in a growing sales pipeline, which should also have an impact on revenue over the next few quarters. SaaS-based solutions, on the other hand, recorded further growth of 15% compared to the same period of the previous year. In particular, the continuous development of new features in all solutions and the flexible customization options to meet customer needs make the products attractive to customers and demonstrate the potential associated with them.

Forecast for 2024 confirmed

Developments in the 2024 financial year will continue to be influenced by the difficult overall and sector-specific economic conditions. On August 2, 2024, the company decided to adjust its forecast on the basis of preliminary figures for the first half of 2024. Due to the sale of freesort GmbH, the forecast was adjusted again on September 30, 2024. Revenue for the 2024 financial year is now expected to be up to 7% below the adjusted prior-year revenue of EUR 175.6 million. EBITDA is expected to be up to 17% below the previous year's adjusted EBITDA of EUR 27.6 million. Previously, a decline in sales of up to 6% and a decline in EBITDA of up to 12% had been expected on the basis of the reported key figures.

The expected development of the financial performance indicators for the 2024 financial year is generally based on the assumption of constant exchange rates.

Key figures at a glance:

in EUR million	9M 2024	9M 2023	Change
Revenue	126,8	132,4	-4,2 %
Cost of materials	41,2	44,1	-6,5 %
Employee benefit expenses	44,0	44,5	-1,0 %
Other expenses	26,8	30,0	-10,6 %
EBITDA	18,5	19,6	-5,7 %
Amortization, Depreciation and Impairment	13,9	12,3	13,0 %
Consolidated profit	7,7	2,0	280,6 %
Earnings per share (in EUR)	0,49	0,13	280,9 %
Free Cashflow	20,5	5,6	266,4%

 *Due to the sale of the Mail Service division in 2024, the presentation of the comparative period has been adjusted.

The full quarterly statement is available for download at: https://www.fp-francotyp.com/reporting-centre/

 

Disclaimer
Statements in this release that relate to the future development and forecasts of the Group are based on our careful assessment of future events. Additional negative macroeconomic developments may result in the actual performance for the 2024 financial year deviating from the forecast.

For Investor Relations inquiries, please contact:
Dr. Monika Plum
Phone: +49 (0)30 220 660 410
E-Mail: ir@francotyp.com

About Francotyp-Postalia:
Francotyp-Postalia Holding AG, a listed company based in Berlin, is the holding company of the globally active FP Group (FP). FP is an expert in solutions that make office and working life easier and more efficient. FP has two business areas: Mailing & Shipping Solutions and Digital Business Solutions. In the Mailing & Shipping Solutions division, FP is the world's third-largest provider of mailing systems and the market leader in Germany, Austria, Scandinavia and Italy. In the Digital Business Solutions area, FP improves customers' business processes with solutions for document workflow management, business process management & automation and shipping management & logistics. FP is represented in 15 countries by its own subsidiaries and in many other countries via a dealer network. The Mail Services division was sold in 2024. In 2023, FP generated adjusted revenue of more than EUR 175 million.

Contact:
Francotyp-Postalia Holding AG
Investor Relations
Telefon: +49 (0)30 220 660 410
Telefax: +49 (0)30 220 660 425
E-Mail: ir@francotyp.com