Dutch postal company PostNL plans to extend its international reach, including increasing its presence in Belgium. The company made the announcement at the same time as a statement of bad results.
PostNL saw its net profit plummet last year by two-thirds to €18 million due to a significant decline in its postal division’s performance, CEO Herna Verhagen announced on Monday. PostNL’s operating profit (normalised EBIT) fell by 43% to €53 million, missing analysts’ expectations.
"The financial results confirm once again that the current business model is no longer sustainable," Verhagen said, referring specifically to the postal division.
The company had previously warned of lower annual profits and is now focusing on its request for tens of millions of euros in aid from the Dutch government. The company states that it needs a total of €68 million for this year and next year, and sought this assistance on Friday.
However, the government did not accept the request. "We stress that without intervention, the postal service is unsustainable and imposes disproportionate pressure on PostNL," Verhagen said.
Expanding in challenging times?
The postal division’s results dropped by over €30 million in 2024, with an 8% decline in mail deliveries. PostNL expects a further deterioration in postal results this year, making the postal service unprofitable for the entire year. In contrast, the parcels division experienced a 7% growth in volume, slightly below expectations.
PostNL hopes to benefit more from parcel delivery in the future. The company plans to rapidly expand its network of parcel lockers in the Netherlands, which are widely used for sending and receiving packages. Additionally, PostNL aims to extend its international reach, including increasing its presence in Belgium.
Verhagen will step down in April and be succeeded by CFO Pim Berendsen. He anticipates that in 2025, the company’s overall profit will be similar to last year’s, adjusted for factors such as interest and taxes.
