PostNL cuts 2024 forecasts, announces CEO exit
Adds shares in paragraph 3, analyst comments in paragraphs 6, 8, 10-11, Q4 forecast in paragraph 7, group result paragraph 9, peer performance paragraph 12
By Olivier Cherfan
Nov 4 (Reuters) -PostNL PTNL.AS cut its full-year targets on Monday, citing persistently volatile economic conditions, and said CEO Herna Verhagen would step down after the Dutch postal operator's annual general meeting in April next year.
Verhagen will be replaced by the current chief financial officer, Pim Berendsen. PostNL said it aimed to announce a new, female CFO and member of the management board before April.
Its shares fell around 1.8% to 1.08 euros per share by 0940 GMT.
The company, which delivers parcels and letters across Belgium, the Netherlands and Luxembourg, now sees normalised operating profit of around 80 million euros ($87.2 million) this year, at the bottom of its previously given outlook range.
It also expects free cash flow at break-even and normalised comprehensive income of around 40 million euros, at the low ends of their respective ranges.
Analysts at Jefferies and KBC Securities said PostNL's update was soft, even if the company is confident it will deliver a strong fourth quarter — strength Degroof Petercam analysts said was needed to meet the new targets.
Parcel volumes were up 7.4% in the third quarter, supported by accelerating domestic volume growth. PostNL said its parcel business was well-positioned for the anticipated pick-up towards double-digit percentage growth in the fourth quarter, to reach full-year volume growth of 7% to 10%.
"Meeting the new guidance will depend largely on keeping the growth momentum seen in September of double-digit parcel volumes also in 4Q24," ING analysts said in a note.
PostNL's normalised operating loss was 18 million euros in the third quarter, missing analysts' forecast by 6 million.
That was driven by weaker mail volumes and balanced price and labour cost increases, among others, ING said.
PostNL and trade unions agreed in mid-October on a 7% pay raise for employees and Saturday deliverers over two years. ING said the impact of that would be mostly seen in 2025.
DHL-owner Deutsche Post DHLn.DE also cut its 2024 guidance last week, citing weak business-to-business mail volumes and lower-than-expected margins in its air freight forwarding business.
($1 = 0.9175 euros)
Reporting by Olivier Cherfan in Gdansk; editing by Milla Nissi
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