InPost S.A. ((NL:INPST)) has held its Q4 earnings call. Read on for the main highlights of the call.
InPost S.A. recently held its earnings call, revealing a year of record-breaking achievements and robust growth across various metrics. The general sentiment was positive, with significant increases in parcel volumes, revenue, and international expansion. However, the company acknowledged challenges in consumer sentiment within Poland and competitive pressures in international markets.
Record-Breaking Year for InPost
InPost celebrated a remarkable year with parcel volumes reaching PLN 1.1 billion, marking a 22% increase year-on-year. Revenue also saw a substantial rise, exceeding PLN 11 billion, a 23% growth from the previous year. The company’s adjusted EBITDA climbed to PLN 3.6 billion, reflecting a robust 33% increase, underscoring its financial strength and operational efficiency.
Expansion of APM Network
The company made significant strides in expanding its Automated Parcel Machine (APM) network, adding 11,500 units and growing the network by 32% year-on-year to a total of 47,000 machines. This expansion solidifies InPost’s leadership in out-of-home delivery across Europe, enhancing its service reach and efficiency.
Environmental Sustainability Initiatives
InPost is committed to achieving net zero by 2040, having already achieved a 98% reduction in CO2 emissions over the last mile and a 71% reduction across the entire route. Over the past three years, overall CO2 emissions per parcel have decreased by 37%, demonstrating the company’s dedication to environmental sustainability.
Loyalty Program and User Engagement
The introduction of InPost’s loyalty program has been a success, attracting 11 million users and boosting user engagement. The mobile app, with nearly 14 million users, plays a crucial role in increasing parcel orders and enhancing customer interaction.
International Market Growth
InPost’s international segment experienced strong growth, with revenue increasing by 44%. The UK and France emerged as key markets, with significant expansions in APM networks and merchant partnerships, further solidifying InPost’s international presence.
Weaker Consumer Sentiment in Poland
Despite overall growth, InPost faces challenges with softer consumer sentiment in Poland, influenced by geopolitical uncertainties and a slowdown in e-commerce market growth, which could impact future performance in the region.
Mixed Results in Mondial Relay
Mondial Relay, a part of InPost, reported a 28% increase in the B2C segment volume. However, overall volume growth was limited to 10%, affected by a stable C2C segment, indicating mixed results in this area.
Challenges in Market Penetration
InPost encounters competitive challenges in markets like France, where La Poste remains a formidable competitor in to-door delivery, and in the UK, where the company continues to expand its network amidst a competitive landscape.
Forward-Looking Guidance
Looking ahead, InPost remains optimistic about its growth trajectory. The company plans to continue its network expansion and operational enhancements, with capital expenditures increasing by 37% to over PLN 1.4 billion. Despite these investments, InPost has successfully reduced its net debt-to-EBITDA ratio, indicating strong financial management. The company also aims to maintain its commitment to ESG goals, further reducing CO2 emissions per parcel.
In summary, InPost’s earnings call highlighted a year of significant achievements and growth, with a positive outlook for the future. While challenges exist, particularly in Poland and competitive international markets, the company’s strategic initiatives and strong financial performance position it well for continued success.