FRANCOTYP-POSTALIA HOLDING AG Financial Results FY 2023
CONFERENCE CALL
April 25th 2024
FP Management Board
New Team
Friedrich G. Conzen | Ralf Spielberger |
CEO | CFO | |
since March 2024 | since October 2022 | |
FP | 1
FY 2023 Financial Performance*
€ m | FY 2022** |
as reported |
Revenue251.0
FY 2023 | FY 2023 | Guidance 2023 | ||||
as reported | at constant | |||||
currency | ||||||
241.8 | -3.7% | 245.9 | 245 - 255 | ✓ | ||
EBITDA | 27.6 | 31.0 | 12.3% | |
EBITDA Margin | 11.0% | 12.8% | 1.8pp | |
Depreciation/ | 21.0 | 18.0 | ||
Amortisation | ||||
Consolidated | 8.0 | 10.5 | ||
Profit | ||||
EPS | 0.50 | 0.67 | ||
(basic/diluted Euro) | ||||
33.4 | 28 - 31 | |
13.6 % | 11.4 - 12.2 % | |
- Unaudited figures for 2023. Publication of the audited financial statements and audited consolidated financial statements will be delayed until April 30, 2024, due to the transfer to the ESEF.
- FY 2022 figures adjusted, relating to the measurement of tax-effects from intra-group relationships. The correction led to a reduced tax expense of EUR 2.5 million in 2022.
FP | 2
FY 2023 financial performance*
€ m | FY 2022** | FY 2023 | FY 2023 | ||||
as reported | as reported | at constant | |||||
currency | |||||||
Revenue | 251.0 | 241.8 | -3.7% | 245.9 | -2.0% | ||
EBITDA | 27.6 | 31.0 | 12.3% | 33.4 | 21.0% | ||
EBITDA Margin | 11.0% | 12.8% | 1.8pp | 13.6 % | 2.6pp | ||
- Unaudited figures for 2023. Publication of the audited financial statements and audited consolidated financial statements will be delayed until April 30, 2024, due to the transfer to the ESEF.
- FY 2022 figures adjusted, relating to the measurement of tax-effects from intra-group relationships. The correction led to a reduced tax expense of EUR 2.5 million in 2022.
Revenue
-
MSO decline of 1.1% from € m 148.4 to 146.8,
PY with positive one-offs - DBS growth in SaaS-business, overall decline of 3.1% from € m 28.8 to 27.9 due to output management
- Mail Services decline of 9.0% from € m 73.4 to 66.8 as expected
- Negative FX-effect of € m 4.1
EBITDA
- Investing in One ERP (€ m 3.9) expensed as incurred
- Negative FX-effect of € m 2.4
- Previous year positive effect from rate change (€ m 2.6)
- Release of provisions of € m 4.8
FP | 3
Free Cash Flow and Net Debt 2023
Improving Free Cash Flow and Net Debt
Free Cash Flow € m | FY 2022 | FY 2023 | |
Cash Flow from operating activities | 22.4 | 23.6 | |
Free Cash Flow | 8.1 | 9.1 | 12,4% |
Net Debt € m | 31.12.2022 | 31.12.2023 | |
Financial Debt (incl. Leasing) | 41.0 | 33.5 | |
Cash (without postage held) | 22.8 | 19.2 | |
Net Debt | 18.1 | 14.4 | - 20.4% |
- Higher cash flow from operating activities
- Higher consolidated profit
- Lower depreciation, inventories and trade receivables
- Higher free cash flow
- Despite slightly increased invests in
-
Fixed assets: PostBase Vision, techn. equipment, renewal of hardware DBS (€ m 11.5 vs. 8.6 in FY
2022) - Capitalization of development costs: PostBase
Vision and DBS (€ m 2.7 vs. 1.1 in FY 2022)
-
Fixed assets: PostBase Vision, techn. equipment, renewal of hardware DBS (€ m 11.5 vs. 8.6 in FY
- Repayment of the current portion of the syndicated loan (€ m 7.5) was made out of free cash flow
- Net debt decreased € m 3.7 (-20.4%)
FP | 4
FP Mailing, Shipping & Office Solutions
Revenue in line with expectations in a challenging market environment
-1.1%
148.4 146.8
Revenue Mailing,
Shipping & Office
Solutions in € m*
FY 2022 | FY 2023 |
*Excluding all digital stand-alone software solution revenues sold by MSO; previous year figures have been adjusted with reclassification of services
- Revenue at constant currency (€ m 150.4) increased by 1.3%
- Previous year positive effect from rate change (€ m 2.9)
- Two product launches in 2023
- PostBase Vision A120 in April 2023
- PostBase Vision M2 in December 2023
- Ongoing switch of Azolver customers to FP franking machines
FP | 5
FP Digital Business Solutions
Continuous investment and growth in SaaS-based solutions
28.8
Revenue | SaaS |
7.3 | |
Digital Business |
Solutions € m*
FY 2022
-3.1%
27.9
+13.7% SaaS
8.3
FY 2023
Input & Outputmanagement
- Investment in hardware and software to increase efficiency and offer more data-driven services
- Output management affected by business decline of a customer and lower activity of existing customers due to mail volume decline
FP Sign
- Major release in September including new enterprise functionalities
- Growth in annual recurring revenue and customer acquisition
e-Justice /De-Mail
- Continuous customer onboarding of e-justice solution for business and organisations after launch of eBO in June 2023
FP Parcel Shipping
- launched in Norway (Q1), Netherlands (Q2) and UK (Q4)
FP TRAXsuite
- New features and functionalities, e.g. for easy self-customization
- Continuous customer onboarding
*Including all digital stand-alone software solution revenues sold by MSO; | FP | 6 |
previous year figures have been adjusted: DBS consolidation profits have been reallocated from Mail Services to DBS | |
FP Mail Services
Revenue in line with expectations
-9.0%
▪ Revenue in line with expectations | ||
▪ FY 2022 was impacted by pandemic-relatedone- | ||
off effects of € m 10 (higher volumes and higher | ||
share of franked mail) | ||
73.4 | 66.8 | ▪ After positive experience in the pandemic, customer |
continue outsourcing the franking service, resulting | ||
in higher franking volumes in FY 2023 |
▪ Despite lower volumes, planned turnover was achieved under the new discount scheme from January 2023
▪ Consistent cost management, including logistics cost savings has improved margins
Revenue
Mail Services
in € m
FY 2022 | FY 2023 |
FP | 7
Summary FY 2023
Revenue largely in line with expectations
- Robust MSO business with 1.3% growth at constant currency
- Challenging Mail Services and output management business due to declining mail volume
- Continuous growth in SaaS-business (FP Sign, FP Parcel Shipping, FP TRAXSuite)
EBITDA above full year guidance
- Transformation initiatives improved operational profitability
- Increased EBITDA at constant currency without release of provisions
FP | 8
FP Assessment and Actions in Not Yet 100 Days
1st focus on operational excellence and execution
Starting
Point
- FP 100 years
- solid foundation for transformation
Assess &
Identify
- Comprehensive assessment
- Engaging with stakeholders
- Key projects/ initiatives identified
Implement
Key Value Driver
Framework
- Identify key value drivers for business units alongside customer experience domains
- Prioritize activities and resources
- Drive operational execution and excellence
- Accelerate transformation
Strategic
Direction
MSO
- stabilize top line, improve cost structure, sustainable product range
Mail Services
- Stabilize top line, improve cost structure
DBS
- Growth: internationalization, digital commerce platform
Optimize cash flow generation - quick wins + long-term strategy for financial stability
FP | 9
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Disclaimer
Francotyp-Postalia Holding AG published this content on 25 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 April 2024 09:07:01 UTC.
