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Berlin, November 23, 2023 –Francotyp-Postalia Holding AG (ISIN DE000FPH9000) today announced its financial results for the first nine months of 2023.
Revenue of EUR 182.5 million declined by 3.3% compared to EUR 188.7 million in the same period of the previous year. On a constant currency basis (EUR 185.3 million), revenue decline is 1.8%. Additionally, previous year’s results were impacted by favorable one-time effects of EUR 13 million.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) reached EUR 22.2 million after EUR 22.4 million in the same period of the previous year and an EBITDA margin of 12.2%. On a constant currency basis EBITDA was EUR 23.7 million and grew by 5,8%. EBITDA for the first nine months of 2023 includes release of provisions of EUR 2 million due to changes in restructuring plans. Furthermore, EBITDA for the first nine month of 2022 was impacted by positive one-time effects. Free cash flow totaled EUR 5.6 million in the reporting period compared to EUR 6.9 million in the same period of the previous year. Net debt was further reduced by 4% to EUR 17.4 million.
Business performance in the first nine months of 2023
Revenue in the Digital Business Solutions (DBS) area rose by 3.1% to EUR 21.7 million compared to EUR 21.0 million in the same period of the previous year. Revenue in the Document Workflow Management area declined mainly due to a business decline of a larger customer. The implementation of new hardware and software for input and output management, which started in the first quarter of 2023, is almost complete and will positively impact profitability with higher automation and fostering the acquisition of new customers. All other areas in DBS show continuous growth. FP Sign was expanded with a comprehensive release to include new functionalities for enterprise customers. In Shipping& Logistics, the internationalization of FP Parcel Shipping continuous after the market launch in the Netherlands and Norway and Trax Suite attracts further customers internationally.
Revenue in the Mailing, Shipping & Office Solutions area fell by 1.5% to EUR 110.0 million in the first nine months of 2023 compared to EUR 111.7 million in the same period of the previous year. On a constant currency base, revenue was stable at EUR 112.5 million. In addition, revenue in the previous year’s period was influenced by positive one-time effects from the postal rate change in Germany amounting to EUR 2.9 million. In a demanding market environment, FP is demonstrating resilience and adjusting its business model to align with both market dynamics and customer needs.
As expected, revenue in the Mail Services business area related to the collection, franking and consolidation of business mail fell by 9.6% to EUR 50.5 million after EUR 55.9 million in the same period of the previous year, which was positively impacted by pandemic-related one-time effects of EUR 10.0 million.
Progress in transformation program FUTURE@FP
Carsten Lind, CEO of FP, says: "Despite the challenging economic climate, we continue growing in our SaaS solutions, and the Mailing, Shipping & Office Solutions and Mail Services areas are exhibiting stable development. We are progressing with our FUTURE@FP transformation program. We are improving structures, processes, product development and sales as the basis for the continued profitable growth of the FP Group."
FP achieves EBITDA-Margin of 12,2 %
In the first nine months of 2023, the FP Group generated an EBITDA of EUR 22.2 million compared to EUR 22.4 million in the same period of the previous year, thus achieving an EBITDA margin of 12.2%. At a constant currency basis EBITDA is EUR 23.7 million. Furthermore, EBITDA for the first nine month of 2022 was impacted by positive one-time effects.
The cost of materials fell by 8.0% to EUR 86.7 million in the first nine months compared to EUR 94.3 million in the same period of the previous year, primarily due to the decline in sales in the Mail Services division.
On the other hand, personnel expenses increased by 0.8% to EUR 48.0 million compared to EUR 47.6 million in the same period of the previous year. This figure includes a net income of EUR 2.0 million resulting from changes in restructuring provisions, attributed to alterations in the implementation of FUTURE@FP.
Other operating expenses increased by 7.4% to EUR 31.5 million in the reporting period. This was mainly due to the increase in external costs for the ERP/CRM project, personnel-related costs and costs for repairs and maintenance, partially offset by the reduction in packaging and freight costs.
Depreciation, amortization and impairments decreased by 14.0% to EUR 13.1 million in the first nine months of 2023. This was primarily due to the lower amortization of intangible assets. EBIT thus increased to EUR 9.1 million compared to EUR 7.2 million in the previous year. Consolidated net income amounted to EUR 4.5 million compared to EUR 6.1 million in the same period of the previous year due to a decline in net interest and financial result. Earnings per share (EPS) amounted to EUR 0.29 compared to EUR 0.38 in the same period of the previous year.
Forecast confirmed for 2023
In 2023, the FP Group will continue to drive forward its transformation. Developments to date confirm that the FUTURE@FP program is heading in the right direction. After a number of positive one-time effects that characterized the previous year, the Management Board expects revenue of EUR 245 to 255 million for the 2023 financial year based on normalized revenue of EUR 229 million and normalized EBITDA of EUR 26.2 million in 2022. This revenue guidance is confirmed, although it is expected to be achieved at the lower end of the range. EBITDA is still expected to be in the range of EUR 28 million to EUR 31 million. The expected development of the financial performance indicators for the financial year 2023 is generally based on the assumption of constant exchange rates.
Ralf Spielberger, CFO of FP, explains: "Our figures are solid despite the economic headwinds. Both revenue and profitability are progressing as anticipated. We are fully committed on the further roll-out of the ERP/CRM system, having successfully converted the first entities."
Key figures at a glance:
|in EUR million
|Cost of materials
|Employee benefit expenses
|Other operating expenses
|Amortisation, Depreciation and Impairment
|Earnings per share (in EUR)
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Francotyp-Postalia Holding AG, a listed company based in Berlin, is the holding company of the globally operating FP Group (FP). FP is an expert in solutions that make office and work life easier and more efficient. FP has the following business areas: Digital Business Solutions, Mailing, Shipping & Office Solutions and Mail Services. In the Digital Business Solutions business area, FP improves customers' business processes with solutions for document workflow management, business process management & automation and shipping & logistics. In the Mailing, Shipping & Office Solutions business areas, FP is the world’s third-largest provider of mailing systems and is also the market leader in Germany, Austria, Scandinavia and Italy. FP has subsidiaries based in 15 countries and is represented by its own trading network in many other countries. In the Mail Services business areas, FP offers the consolidation of business mail and is among the leading providers in Germany. In 2022, FP generated revenue of more than EUR 250 million.