By Anna Pruchnicka
(Reuters) -Parcel locker company InPost reported on Wednesday better than expected first-quarter core earnings and hiked its revenue and volumes forecasts reflecting a recent acquisition in Britain.
Its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 24% to 940.2 million zlotys ($248 million), versus 923 million expected by analysts polled by InPost.
The company, which operates across nine countries including its home base Poland, is best known for its automated parcel machines, or APMs, that allow customers to collect or drop off packages when it suits them.
It delivered 272 million parcels in the first quarter, up 12% year-on-year, and expanded its APM network by 32% to 49,808.
It confirmed annual forecast for adjusted EBITDA growing in a low to mid-twenties percentage, but expects group revenue to grow by 35% to 40% instead of the previously guided high-teens to low twenties growth.
It sees volumes growing by 25% to 30%, versus its previous expectations for mid-teens growth.
The updated guidance reflects InPost’s recent acquisition of parcel delivery firm Yodel in Britain and its new reporting segments, it said.
Following the Yodel deal, InPost has said its share of the UK market rose to about 8%, making it the third biggest e-commerce logistics carrier in the country.
Volumes in Britain rose 39% in the quarter, and InPost said that after the Yodel deal it collaborates with more than 700 merchants in the strategic business-to-consumer area.
In Poland, its biggest market, parcel volume growth was largely driven by small and medium merchants, as the company expanded its network by 15% to 25,949 APMs.
“We think the market will view this update as a small positive given the good start to the year and increasing traction with SME merchants in Poland and International,” JPMorgan analysts said in a note.
For the second quarter, InPost said it expected volume growth in a high single-digit percentage in Poland, outpacing a softer e-commerce market. Abroad, it sees volumes rising about 50% year-on-year.
($1 = 3.7857 zlotys)
(Reporting by Anna Pruchnicka in Gdansk; Editing by Muralikumar Anantharaman and Milla Nissi-Prussak)
