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Berlin, May 25, 2023 - Francotyp-Postalia Holding AG (ISIN DE000FPH9000) reported revenue and earnings development as planned in the first three months of 2023. The FUTURE@FP program continuous to transform the traditional company into a sustainably profitable, international technology group.
FP generated consolidated revenue of EUR 63.8 million in the first three months of the current fiscal year, compared to EUR 65.2 million in the same quarter of the previous year. Several positive one-time effects totaling to almost 10 million influenced the previous year quarter. Earnings before interest, taxes, depreciation and amortization (EBITDA) reached EUR 8.7 million, compared with EUR 10.3 million in the same period of the previous year; the EBITDA margin thus reached 13.6%. In the same quarter of the previous year, EBITDA was also affected by positive one-time effects of more than EUR 2 million. Free cash flow amounted to EUR 4.5 million, compared with EUR 2.0 million in the prior-year quarter, which included the acquisition of the operating companies of Azolver.
Digital Business Solutions business area recorded revenue growth of 10.5% to EUR 8.4 million in the reporting period, compared with EUR 7.6 million in the same period of the previous year. First quarter 2022 included one-time revenues from pandemic related mailings in Document Workflow Management of EUR 0.4 million. Without those one-offs first quarter 2023 grew by 16.7%. Initiated in the first quarter, FP started the implementation of new technologies in Document Workflow Management driving operational efficiency and delivering higher value-added digital solutions to customers. Business Process Automation & Management grew again in all solutions. FP continuously invests in developing the solutions with new features and further integrations for FP Sign into third-party platforms. In the Shipping & Logistics segment, FP grew in all solutions. The first stand-alone SaaS-based FP Parcel Shipping solution was launched in Norway in the first quarter, enabling customers to manage their parcel shipping quickly and easily at attractive rates.
Revenue in the Mailing, Shipping & Office Solutions business unit increased by 8.5% to EUR 38.2 million compared to EUR 35.2 million in the prior-year period. FP benefited from recurring revenues and the revenue contribution of the Azolver companies acquired in March 2022, while the prior-year quarter was impacted by one-time positive effects from the postage rate change in Germany, amounting to EUR 2.9 million. Based on the existing product range for the lower mail volume segments, and thanks to the high proportion of recurring revenue, the company has a robust business model and continues to invest in further development in the franking business.
As expected, revenue in the Mail Services business area relating to the collection, franking and consolidation of business mail fell by 23.2% to EUR 17.2 million, compared with EUR 22.4 million in the previous year. Revenue in the prior-year quarter was higher than usual due to pandemic-related non-recurring effects of EUR 5.2 million.
Transformation program FUTURE@FP with positive effects
Carsten Lind, CEO of FP says: "We have been consistently pursuing our transformation program for two years. And the results of the last quarters show a sustainable positive development. This quarter, we achieved a real milestone for FP with the first international launch of an FP-own SaaS-solution by going live with FP Parcel Shipping in Norway. In 2023, we will continue to invest in our products and solutions and drive forward further internationalization of FP Sign and FP Parcel Shipping. In this way, we are creating the conditions for long-term growth in revenues and earnings and increasing the company’s value."
Ralf Spielberger, CFO of FP explains: "We started successfully into the new fiscal year. With profitable growth in the Digital Business Solutions and Mailing, Shipping & Office Solutions areas as well as a focus on operational improvements we are on track to achieve our targets for the full year. Our ongoing transformation into a sustainably profitable international technology group is reflected in the figures and reinforces our long-term strategy."
Earnings per share at 0.15 euros
In the first three months of 2023, the FP Group generated an EBITDA of EUR 8.7 million compared with EUR 10.3 million in the same period of the previous year. The EBITDA margin is thus 13.6%. The increase in revenue in Mailing, Shipping & Office Solutions and Digital Business Solutions area and the increased cost efficiency as part of the transformation program positively affected earnings development. Mainly due to the Azolver acquisition, personnel expenses increased by 20.3% to EUR 17.1 million, compared with EUR 14.2 million in the prior-year quarter. By contrast, the cost of materials decreased by 10.5% to EUR 30.3 million in the first three months, compared with EUR 33.9 million in the prior-year period, primarily due to the revenue decline in the Mail Services business area. Other expenses increased 19.8% year-on-year to EUR 10.3 million in the first quarter of 2023. This was mainly due to external costs for the ERP/CRM project, personnel-related costs, and costs for repairs and maintenance. In the prior-year period, M&A costs for the acquisition had been expensed here.
Depreciation, amortization and impairment losses decreased by 10.9% to EUR 4.4 million. EBIT thus amounted to EUR 4.3 million, compared with EUR 5.4 million in the first quarter of the previous year. As a result of a decline in net interest and financial results, net profit amounted to EUR 2.4 million compared to EUR 5.3 million in the same period of the previous year. Earnings per share (EPS) amounted to EUR 0.15, compared with EUR 0.33 in the same period of last year.
Forecast confirmed for 2023
In 2023, the FP Group will continue to drive forward the transformation. The development confirms that the FUTURE@FP program is heading in the right direction. The Management Board confirms the forecast for the current year. After the previous year was characterized by a number of positive one-time effects, the Management Board expects revenues of EUR 245 to 255 million for fiscal 2023 based on normalized revenues of EUR 229 million and normalized EBITDA of EUR 26.2 million in 2022. EBITDA is forecasted in a range of EUR 28 to 31 million. The ongoing transformation of the Group, investments in product development and the successful integration of the acquired operating companies of the Azolver Group will be reflected in a further increase in the EBITDA margin. The expected development of the financial performance indicators for 2023 is generally based on the assumption of constant exchange rates.
Key figures at a glance:
|in EUR million||Q1 2023||Q1 2022||Change|
|Cost of materials||30.3||33.9||-10.5 %|
|Employee benefit expenses||17.1||14.2||+20.3 %|
|Other expenses||10.3||8.6||+19.8 %|
|Amortisation, Depreciation |
|Consolidated profit||2.4||5.3||-55.6 %|
|Earnings per share (in EUR)||0.15||0.33||-54.5 %|
|Free Cashflow||4.5||2.0||+127.9 %|
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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 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 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 2022, FP generated revenue of more than EUR 250 million.