Despite high inflation and weak economic momentum, Austrian Post recorded 15% growth in domestic parcel volumes in the first quarter of 2024, with volumes by rising 6% in Turkey and 44% in Southeastern and Eastern Europe.
The company also saw revenues increase by 14.1% to €758.6m (US$815.6m), with even the mail division achieving 2.3% growth to €315.6m (US$339.3m) despite structural decline in addressed letter mail volumes and the declining advertising business. It was positively influenced by rate adjustments for letters as well as direct mail and media mail.
“Against the backdrop of difficult market conditions and inflation-related cost increases, the first quarter of the year went very well with an increase in revenue and earnings,” said CEO Georg Pölzl.
The Parcel & Logistics Division generated revenue of €402.9m (US$433.2m), up 23%, while Retail & Bank Division revenues grew by 26% to €47.2m (US$50.7m).
Earnings also improved in the first quarter: EBITDA rose by 8.7% to €103.4m (US$111.1m) and earnings before interest and tax (EBIT) by 11.4% to €52.4m (US$56.3m).
Continued growth for the rest of the year
For 2024, Austrian Post aims to counter inflation-driven cost increases by introducing new products and services as well as price adjustments. According to current forecasts, growth in the mid-single-digit range is expected for the 2024 financial year.
In both mail and parcel logistics, solutions are being driven forward that offer a high level of customer benefit but also enable efficient and predictable processes. Austrian Post expects earnings (EBIT) in 2024 to at least match the previous year’s level. A slight increase in earnings is possible if the current macroeconomic environment in Austrian Post’s markets continues, the post stated.