Bpost saw its profits more than half in the third quarter of the year, partly due to the cost of new contracts to deliver newspapers across Belgium.
The Belgian national post operator reported profits (adjusted earnings before interest and taxation) of €10.3 million for the third quarter, less than half the €28.1 million reported for the same period last year.
The company attributed the fall in earnings reflects to "new press contracts and North American pressures", although losses were partially offset by the contributions from Staci, a logistics company which Bpost acquired earlier this year.
At the end of last year, Belgium's Federal Government decided to phase out a concession scheme that subsidised a government-designated distributor to deliver newspapers and magazines across the country.
Bpost has historically been the scheme distributor and when the phase-out was announced its workers led strike actions over concerns about the future of the delivery service and the working conditions of its staff.
Bpost operator has since secured new delivery contracts with both Flemish and French-speaking newspapers, without the Federal subsidy scheme.
Since 1 July, newspaper distribution in Flanders has been gradually transferred to its subsidiary AMP. In Wallonia, Bpost will continue deliveries at least until the end of 2025.
Losses offset by strong mail and parcel performance
While the end of the press concession impacted Bpost's income in the third quarter, the company said this was offset by "resilient mail revenues and strong parcel volume growth".
Bpost saw a total operating income of €1.o2 billion in the third quarter, up 4.7% compared to last year.
Chris Peeters, CEO of Bpost Group, said the results align with the group's plans. "These results evidence our need to reshape our domestic activities and further develop our commercial offering. They also support our strategic shift toward logistics as shown by Staci’s EBIT contribution this quarter," he said.
"Our focus now turns to the crucial year-end period. Our teams across the globe and divisions are ready to address this peak, and we are confident in a solid performance," he added.
Bpost predicts that its total operating income for 2024 will "grow by a low single-digit percentage" and that profits (adjusted EBIT) will reach between €205 million and €230 million.
