PostNL confirms 2024 outlook, swings to loss amid high labour costs, low mail volumes
Adds shares in paragraph 3, Dutch volumes in para 4, brokers in para 5, CFO in para 7, parcel volumes in para 9
By Olivier Cherfan
May 6 (Reuters) -PostNL PTNL.AS reported a bigger-than-expected loss for the first quarter on Monday, citing rising labour costs and a drop in domestic mail volumes, although the Dutch postal firm maintained its full-year outlook.
The company, which delivers parcels and letters across Belgium, the Netherlands and Luxembourg, posted an operating loss before interest and taxes of 9 million euros ($9.68 million), down from a profit of 7 million euros in the year-ago period and below a company-compiled consensus for a 2 million euro loss.
Shares were 3.8% lower at 0841 GMT, at 1.195 euro per share.
Volumes for its Mail in the Netherlands business fell 12.5% to 399 million items during the quarter, with margins hurt by higher wages, high rates of sick leave and a shift to non-premium slower delivery options.
KBC called the quarter "soft", while Degroof Petercam said it was "unconvincing", adding that full-year guidance has become "even more dependent" on the fourth quarter.
PostNL confirmed its forecast for full-year normalised EBIT of between 80 million and 110 million euros and free cash flow of up to 40 million euros.
"Do we expect a potential adjustment to the outlook based on labour market dynamics? No, we don't," Chief Financial Officer Pim Berendsen told Reuters.
PostNL agreed with unions in April to raise wages for those who deliver its mail by at least 19% from January 2024 to December 2025, including a 9.9% rise based on an increased legal minimum wage from the start of this year.
Parcel volumes grew 4.6% to 86 million items, falling short of an 8% consensus, but ING said there is "some comfort", expecting growth to accelerate further.
Belgian peer Bpost BPOST.BR last week reported a 20% drop in first-quarter adjusted EBIT, citing acquisition costs and a challenging North American market.
($1 = 0.9293 euros)
Reporting by Olivier Cherfan in Gdansk; Editing by Sherry Jacob-Phillips, Kirsten Donovan
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