FP with solid performance in the first quarter of 2021

  • Revenue declines by 9.5% to EUR 51.5 million due to the pandemic situation
  • EBITDA amounts to EUR 4.9 million, compared with EUR 8.0 million in the same quarter of the previous year
  • Free cash flow increases to EUR 4.5 million as against EUR 0.0 million in the same quarter of the previous year

Berlin, 27 May 2021 – Francotyp-Postalia Holding AG (ISIN DE000FPH9000), today presented its figures for the first quarter of 2021. Despite the impact of the coronavirus pandemic, FP put in a robust business performance in the first three months while also working on the FUTURE@FP transformation programme, which the Management Board unveiled only recently. The long-term aim is to transform the company into a sustainably profitable international technology group.

Consolidated revenue amounted to EUR 51.5 million in the first three months of this year, compared with EUR 57.0 million in the same quarter of the previous year. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) came to EUR 4.9 million, compared with EUR 8.0 million in the same quarter of the previous year. FP also generated a free cash flow of EUR 4.5 million in the last quarter, as against EUR 0.0 million in the same period of the previous year. It should be noted that the first quarter of the previous year was still virtually unaffected by the pandemic situation and was also better than average.

FP sees decline in franking business

Revenue in the traditional Franking and Office Solutions business fell by 14.5% to EUR 30.2 million. Revenue in the Mail Services business regarding the collection, franking and consolidation of business mail declined by 3.4% to EUR 16.6 million. The processed mail volume decreased slightly as expected. Meanwhile, revenue in the Software & BPA/IoT business developed positively. It grew by 6.3% to EUR 4.8 million. The pandemic situation resulted in substantial restrictions in the input and output management business, and Internet of Things (IoT) projects have been further delayed. However, the signature solution FP Sign saw an increase in business volume and positive development of the order pipeline.

The company is still positive about the digital sector. In the new growth areas, FP is pursuing a customer-centric approach to develop solutions and bring them to market. In this process, FP identifies sub-markets for solutions that will be tapped into with a focused approach. A successful example of this process is FP Sign, with tax consultants as the target market. Just recently, FP has entered into an important partnership with DATEV eG, the third-largest provider of business software in Germany and one of the major European IT service providers for tax consultants, auditors and lawyers. Tax consultants and their clients can thus digitally sign documents such as tax consulting contracts, tax returns and annual statements at the push of a button.

FP CEO Carsten Lind explains: “We made a solid start to the year given the difficult conditions. Nevertheless, further measures are necessary. Firstly, we must continue to adapt the cost structure to the revenue volume. Secondly, we must cultivate and expand the business areas that can at least compensate for the revenue decline in the Franking business. We are therefore hard at work on our transformation programme in order to successfully position FP for the future.”

EBITDA margin of 9.6%

In the first quarter of 2021, the FP Group generated EBITDA of EUR 4.9 million. The EBITDA margin thus amounted to 9.6%, compared with 14.0% in the same period of the previous year. The revenue decline and lower own work capitalised had a negative effect. In contrast, initial savings in employee benefit expenses made a positive contribution to the development of EBITDA, as management structures were streamlined significantly. Employee benefit expenses decreased by 3.9% to EUR 15.4 million. The cost of materials decreased by 8.1% to EUR 25.8 million in the first three months of 2021, primarily as a result of the revenue decline in the Franking and Office Solutions business. Other operating expenses fell by 9.8% to EUR 7.8 million. Amortisation, depreciation and impairment declined by 16.9% to EUR 4.5 million. As a result of lower EBITDA, consolidated profit amounted to EUR 0.9 million in the first three months of 2021, compared with EUR 1.9 million in the same period of the previous year. Earnings per share (EPS) amounted to EUR 0.05 as against EUR 0.12 in the first three months of 2020.

Forecast for 2021 confirmed

2021 will be shaped by the transformation of the FP Group. For the year as a whole, the Management Board anticipates revenue of between EUR 185 and 196 million and EBITDA of EUR 6 to 12 million (EBITDA margin of 3% to 6%).

The company will push on with the restructuring in a targeted and speedy manner. With the FUTURE@FP transformation programme, the Management Board is laying the foundations for a successful Group in the future. In the long term, the digital products in particular hold considerable potential for the future.

Key figures at a glance:

In EUR million Q1 2021Q1 2020


Revenue51,557,0-9,5 %
Cost of materials 25,828,0-8,1 %
Employee benefit expenses 15,4
16,0-3,9 %
Other operating expenses 
7,88,7-9,8 %
EBITDA4,98,0-38,3 %
Amortisation, depreciation
and impairment
4,55,4-16,9 %
Consolidated profit 0,91,9-52,7 %
Earnings per share (in EUR) 0,050,12-54,5 %
Free cash flow 4,50,0n/a

For Investor Relations press enquiries, please contact:

Anna Lehmann
Head of Treasury / M&A / Investor Relations
Tel.: +49 (0)30 220 660 410
E-mail: a.lehmann@francotyp.com

About Francotyp-Postalia:

The stock-listed and globally operating FP Group, headquartered in Berlin, is an expert in solutions that make office and work life easier and more efficient. The FP Group has four business units: Software & Business Process Automation, Franking & Office Solutions, IoT and Mail Services. As the market leader in Germany and Austria and the world's third-largest provider of franking systems, the FP Group is a well-established player with almost 100 years of corporate history. FP is represented in ten countries by its own subsidiaries and in 40 other countries via a dealer network. In the Mail Services business, FP offers the consolidation of business mail and counts among the leading providers in Germany. In the Software & BPA business, 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 growth areas of Internet of Things (IoT), the company develops platform- and software-as-a-service solutions not only to record and transmit data, but also to format this data and make it usable for customers. The Group generated revenue of around EUR 196 million in fiscal year 2020.