Dutch postal company PostNL has reported a financially disappointing year, with profits falling below expectations.
In 2024, the company recorded an operating result (normalised earnings before interest and taxes) of €53 million, a significant drop from €92 million the previous year. PostNL, with operations in the Netherlands, Germany, Italy, Belgium, and the United Kingdom, had forecasted around €80 million in November. Last year, revenue totalled over €3.2 billion.
The shrinking postal market has been a persistent challenge for PostNL. The volume of processed mail in the Netherlands decreased by more than 10% last year.
Additionally, higher labour costs due to staff shortages and higher-than-expected absenteeism impacted the company’s finances. The fourth quarter saw less Christmas mail than previously estimated.
CEO Herna Verhagen stated that the current business model has become unsustainable. She emphasised the urgent need to adapt the Universal Postal Service obligation (which tries to keep services and prices accessible to all users) and seek financial support from the government to ensure a sustainable and financially healthy postal service for the future.
"As a leading player in last-mile delivery in the Benelux region, we are committed to further investments and innovation will remain high on our agenda," Vehagen stated.
Verhagen will step down in April, with CFO Pim Berendsen set to succeed her as the company’s top executive.
PostNL will release its full 2024 results and outlook for the coming year on 24 February.
