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Berlin, 24 November 2022 – Francotyp-Postalia Holding AG (ISIN DE000FPH9000) increased both revenue and earnings in the first nine months of 2022. Consolidated revenue rose by 26.8% to EUR 188.7 million, compared to EUR 148.9 million in the same period of the previous year. Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 41.4% to EUR 22.4 million after EUR 15.8 million in the same period of the previous year, with the EBITDA margin thus increasing to 11.9%.
FP has been consistently implementing the FUTURE@FP transformation programme since spring 2021. The nine-month figures show that the measures are paying off and are sustainably reflected in the results. The aim is to transform the company into a sustainably profitable international technology group.
In the Digital Business Solutions unit, FP recorded revenue growth of 32% to EUR 20.9 million in the reporting period, compared to EUR 15.8 million in the same period of the previous year. This business unit is benefiting from the targeted measures initiated under the transformation programme and is focusing on business models with a clear value proposition for customers and significant potential to be scaled up. The Document Workflow Management area in particular recorded higher customer activity. Another revenue driver is the FP Sign signature solution, which is benefiting from both the sales successes in the previous year with recurring revenue and increased new customer acquisition. The solutions for eJustice communication and for DE-Mail are also developing positively both driven by higher customer demand and partly by De-Mail market exit of a competitor. The software solutions in the Shipping & Logistics business area of the newly acquired Azolver operating companies contributed EUR 1.0 million to revenue.
In the Mailing, Shipping & Office Solutions (MSO) business unit, revenue rose by 24% to EUR 112.0 million, compared to EUR 90.1 million in the previous year. The company recorded positive currency effects of EUR 5.0 million and benefited from additional revenue resulting from the postage rate change in Germany. The revenue contribution of Azolver’s operating companies in the MSO business unit amounted to EUR 12.1 million. FP has thus further expanded its market position and grew organically in the MSO business unit by 2.1%. Due to the existing product range, which is geared towards the small mail volume segment, and thanks to the high proportion of recurring revenues, the company has a robust business model and is well positioned for the future.
Revenue in the Mail Services business unit regarding the collection, franking and consolidation of business mail rose by 30% to EUR 55.9 million, compared with EUR 43.0 million in the same period of the previous year. The volume of mail processed increased compared with the previous year. As expected, the momentum of the first half of the year, which was characterised by one-time effects, has slowed somewhat.
Transformation programme yielding positive effects
“We continue on the positive track we started with our FUTURE@FP transformation programme. We simultaneously follow our growth path and achieve operational improvement across business segments and Group Services - despite the current economic climate” says CEO Carsten Lind.
The new CFO Ralf Spielberger added, “The company has achieved double-digit improvements in its key figures for revenue and EBITDA. We will continue to implement the transformation programme and make FP even more digital. One of the next important milestones will be to finalize the implementation of the new ERP/CRM system. The new system will provide us with more effective and efficient processes.”
Earnings per share rise to EUR 0.38
In the first nine months of 2022, the FP Group generated EBITDA of EUR 22.4 million compared to EUR 15.8 million in the same period of the previous year. This corresponds to an increase of 41.4%. The EBITDA margin improved to 11.9% (same period of the previous year: 10.6%). The increase in revenue in all business units combined with a reduced cost base, the effects of the postage increase, and currency gains of EUR 3.5 million had a positive impact on earnings development.
In the first nine months of 2022, the cost of materials rose by 26.4% to EUR 94.3 million compared to EUR 74.6 million in the same period of the previous year. This was primarily due to the increase in revenue in the Mail Services business unit and the acquisition of the Azolver Group operating companies. Mainly as a result of the acquisition, employee benefit expenses also increased by 11.8% to EUR 47.6 million compared EUR 42.6 million in the prior-year period. The employee benefit expenses ratio continued to decrease significantly.
Other operating expenses increased by 26.9% to EUR 29.3 million in the first nine months of 2022. Amortisation, depreciation and impairment rose by 7.3% to EUR 15.2 million. As a result of the significant improvement in EBITDA, consolidated profit amounted to EUR 6.1 million as against EUR 2.1 million in the same period of the previous year. Earnings per share (EPS) climbed to EUR 0.38 compared to EUR 0.13 in the same period of the previous year.
Despite higher investing activities, free cash flow came to EUR 6.9 million as compared to EUR 4.6 million in the same period of the previous year.
Forecast for 2022 specified
On the one hand, business performance in 2022 is benefiting from the increasingly positive effects of the transformation programme. On the other hand, there is uncertainty regarding the future economic environment in view of the war in Ukraine, inflation and rising raw material and energy prices.
The Management Board originally anticipated revenue in a range between EUR 229 million and EUR 237 million, compared with EUR 203.7 million in the previous year. This includes organic revenue growth of 3-6% and growth from the acquisition of the Azolver Group operating companies. Measures to sustainably improve profitability will take almost full effect in fiscal year 2022. Depending on how revenue performs, the Management Board therefore expects EBITDA to be between EUR 24 million and EUR 28 million, corresponding to an EBITDA margin of between 10.5% and 11.8%.
In view of the positive development in the first nine months of 2022, the Management Board is confirming the forecast for the full year. The expected revenue level will exceed the upper range of the guidance and EBITDA level is expected at the upper end of the guidance, assuming exchange rates around the current level.
|in EUR million||9M 2022||9M 2021*||Change|
|Cost of materials||94.3||74.6||+26.4%|
|Employee benefit expenses||47.6||42.6||+11.8%|
Other operating expenses
Earnings per share (in EUR)
|Free cash flow||6.9||4.6||+51.0%|
*adjusted prior-year figures
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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 units: Digital Business Solutions, Mailing, Shipping & Office Solutions and Mail Services. In the Digital Business Solutions business unit, FP optimises customers’ business processes and offers solutions such as electronic signatures, hybrid mail, input/output management for physical and digital documents and the data-driven automation of complex business processes. In the Mailing, Shipping & Office Solutions business unit, 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 unit, FP offers the consolidation of business mail and is among the leading providers in Germany. In 2021, FP generated revenue of more than EUR 200 million.