Francotyp-Postalia defies coronavirus crisis with robust results in first half of 2020 

According to preliminary figures:

  • Revenue increases slightly by 0.7% to € 99.7 million

  • EBITDA up significantly by 11.7% at € 13.1 million

  • Adjusted free cash flow reaches € 9.9 million

  • Effects of Corona pandemic in second quarter noticable and effectively countered

  • Forecast for 2020 as a whole specified: decline in revenue to between € 195 million and € 203 million and EBITDA of € 24 million to € 28 million anticipated

Berlin, 27 August 2020 – Francotyp-Postalia Holding AG (FP), the expert in secure mail business and secure digital communication processes, increased its revenue slightly and its EBITDA significantly in the first half of 2020. In the current coronavirus crisis in particular, the robustness of the business model is proving its worth. FP – like almost all companies – felt the effects of the Corona pandemic in the second quarter of 2020, resulting in an expected decline in some product areas at the company.

According to preliminary calculations, revenue rose by 0.7% to € 99.7 million in the first six months of 2020. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 11.7% to € 13.1 million. Particularly due to the impact of the Corona pandemic, the development of revenue and EBITDA in the second quarter was slightly weaker. By way of active cost and liquidity management, the FP Group generated free cash flow of € 5.9 million in the first half of 2020 as compared to € -1.3 million in the same period of the previous year. Adjusted for investments in finance lease assets, M&A and payments for the ACT project JUMP, the FP Group achieved free cash flow of € 9.9 million in the reporting period (H1 2019: € 4.0 million).

Stable core business

In its core franking and inserting business, FP posted a robust development despite the economic effects of the Corona pandemic, with revenue decreasing by 2.6% to € 62.3 million. This includes revenue contributions from the acquisition of Hefter Systemform (€ 1.7 million), the effect of the reassessment of the useful life of leased products from 2019 (€ 1.6 million) and positive currency effects (€ 0.4 million). Compared with the competition, FP has performed well in a difficult general environment. The company has steadily increased its market share since 2016, reaching a level of 12.4% worldwide.

The Mail Services business increased its revenue by 11.8% to € 29.3 million and achieved slight profitable growth again in the second quarter. In the first half of 2020, the processed mail volume decreased slightly due to the strong Corona effects. However, the realignment initiated at the end of 2018 with a focus on profitable revenue is showing results. Deutsche Post AG’s increase in postage tariffs in the previous year also contributed to a positive overall development.

By contrast, revenue in the Software/Digital business posted an 8.5% decrease to € 8.1 million in the first half of 2020. In addition to a decline in business with hybrid mail services due to the Corona pandemic, there was still a lack of the expected revenue contributions from FP Sign and from the Internet of Things (IoT) business. There were several customer project delays in the first six months of 2020 as a result of the coronavirus, while personal consultations could take place only to a limited extent due to access restrictions. Interest in FP’s solutions has recently increased again. The company therefore remains positive about this new product area. The digital transformation is being accelerated by the changed working conditions and offers a positive environment for secure digital solutions.

Consolidated net income increases

In the first six months of 2020, the FP Group increased its EBITDA by 11.7% to € 13.1 million according to preliminary calculations, with the EBITDA margin improving to 13.1% after 11.9% in the same period of the previous year. This was particularly attributable to the Mail Services segment, which made a significant positive earnings contribution. As expected, the ACT project JUMP is also increasingly delivering recurring savings effects.

Amortisation, depreciation and write-downs increased slightly to € 11.2 million in the first half of 2020 after € 10.9 million in the previous year. EBIT increased to € 1.9 million and consolidated net income rose to € 1.8 million. This corresponds to earnings per share of € 0.11 as against € 0.04 in the first half of 2019.

Rüdiger Andreas Günther, CEO of the FP Group, comments: “After a good start to fiscal year 2020, the coronavirus pandemic had a considerable impact in the second quarter. The figures for the first half of the year show that FP has a sound business model and is well equipped for the future. With our comfortable liquidity position, we will continue to steer FP safely through these challenging times.”

Forecast for 2020 specified

The robust development in the first half of the year confirms to the management that it has set the right strategic course for the FP Group with ACT in the long term. The company is well positioned in its core business and its digital products hold considerable potential for the future.

Due to the economic effects of the Corona pandemic, the FP Group is still anticipating a year-on-year decline in revenue, EBITDA and adjusted free cash flow in fiscal year 2020 (assuming constant exchange rates). Based on the half-year figures and its assessments regarding the further development of the pandemic, the Management Board is specifying its forecast. FP thus anticipates a decline in revenue to between € 195 million and € 203 million and EBITDA in a range of € 24 million to € 28 million for 2020 as a whole. With regard to adjusted free cash flow, FP still expects a significant year-on-year decline.

Preliminary key figures at a glance:

in € million
H1 2020
H1 2019
 (in %)



0.7 %




11.7 %

133.3 %
Consolidated net income1.8
149.9 %
Earnings per share

(in €, basic/diluted)
149.1 %
Free cash flow
Adjusted free cash flow9.9

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About Francotyp-Postalia (FP):
The international, listed FP Group with headquarters in Berlin, Germany, is an expert in secure mailing business and secure digital communication processes (FP = “secure digital communication”). As market leader in Germany and Austria, the FP Group offers digital solutions for companies and authorities as well as products and services for efficient mail processing and the consolidation of business mail in the “Software/Digital”, “Franking and Inserting” and “Mail Services” segments. The Group reported revenues of almost €210 million in 2019. FP has subsidiaries based in ten different countries and is represented by its own trading network in an additional 40 countries. With a company history spanning 97 years, FP possesses a unique DNA in the areas of actuating elements, sensor systems, cryptography and connectivity. FP’s global market share for franking systems stands at twelve percent, while the company boasts unique high-security solutions for the Internet of Things (IoT/IIoT) and digital document signatures in the digital segment.