PostNL Strong outlook to bring down leverage, leaving room to resume SBB
On Monday, PostNL reported a nice set of 2Q23 results. The strong results were primarily driven by higher than expect parcel volumes, hereby boosting the operating leverage effect, as well as lower restructuring costs. After revisiting our model, we derive a new underlying EBIT estimate for FY23 of € 114m (prev. € 84m), or at the midpoint of the newly guided € 100- € 130m range (prev. € 70- € 100m). As we expect this to flow through to the bottom line, we bank on a FY23 dividend of € 0.12ps. Moreover, we expect the increased outlook will bring down leverage to 1.7x by year end and 1.5x by end-2024, hereby safeguarding the dividend and leaving room to resume the SBB programme by 2024. We increase our TP from € 1.65 to € 2.10ps and reiterate our hold rating.PostNL is a mail, parcel and e-commerce corporation with operations in the Netherlands, Germany, Italy, Belgium, and the United Kingdom. Co. has been assigned by the Dutch government to carry out the UPD (Universele Postdienst, Dutch for Universal Postal Service). Carrying out the UPD requires, amongst other things, Co. to deliver mail throughout the Netherlands five days a week (Tuesday through Saturday) and to maintain enough mailboxes in the country. ACM is charged with monitoring and enforcing the execution by Co. Co.'s operations are organized along three business segments: Mail in the Netherlands; Parcels; and International. Co. maintains over ten networks across thirteen countries.
We are a financial services provider for several types of professional clients, each with distinct needs.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.