(Reuters) -Belgian postal operator Bpost reported 1.12 billion euros ($1.26 billion) in operating income for the first quarter on Friday, meeting market expectations, driven by the integration of logistics firm Staci.
France-based supplier Staci, acquired by the Belgian group in August 2024, contributed 199 million euros to the company’s operating profit in the first quarter ended March 31.
The group reiterated its full-year outlook for 2025.
WHY IT’S IMPORTANT
Investors were disappointed by the company’s annual outlook, announced in February, particularly due to the cancelled dividend payment and for missing the consensus estimate by a significant margin.
The stock hit its all-time lowest in late February and has lost more than 30% of its value year-to-date.
BY THE NUMBERS
The group’s adjusted earnings before interest and taxes (EBIT) for the reported quarter was 41.6 million euros, down more than 40% year-on-year, but still ahead of the 34.2 million estimated in the company-provided consensus.
The group confirmed annual guidance for 2025’s adjusted EBIT between 150 million and 180 million euros.
KEY QUOTE
“Despite the challenges faced in the first quarter of this year, our results are in line with expectations. We… confirm our outlook… although we remain cautious,” Chief Executive Officer Chris Peeters said.
CONTEXT
Bpost’s mail and parcel business has been struggling since November 2023 due to declining profitability from lost press distribution contracts in Belgium and falling mail volumes.
A two-week strike in February further impacted the company’s operational stability.
($1 = 0.8909 euros)
(Reporting by Hugo Lhomedet and Mateusz Rabiega; Editing by Sumana Nandy)
