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Berlin, August 31, 2023 - Francotyp-Postalia Holding AG (ISIN DE000FPH9000) achieved solid revenue and earnings figures as planned in the first six months of 2023, although the comparable period in 2022 was affected by positive one-time effects. The renewed growth in the two business areas Digital Business Solutions and Mailing, Shipping & Office Solutions reflects the ongoing work on the FUTURE@FP transformation program.
In the first half of the current fiscal year, FP generated consolidated revenue of 124.6 million euros compared to EUR 127.6 million in the same period of the previous year, which was impacted by several positive one-time effects amounting to EUR 12.9 million. In addition, negative exchange rate effects of EUR 1.1 million were incurred in 2023, whereas previous year period included positive exchange rate effects of EUR 2.8 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) reached EUR 15.3 million, compared with EUR 16.3 million in the prior-year period. The EBITDA margin was 12.3%. EBITDA in the prior-year period was also impacted by positive one-time effects of EUR 2.6 million. Free cash flow amounted to EUR 5.5 million compared to EUR 7.4 million in the prior-year period.
Revenue in the Digital Business Solutions business area increased by 9.6% to EUR 15.7 million in the reporting period, compared with EUR 14.3 million in the prior-year period. The previous period was affected by positive one-time effects of EUR 0.4 million in the Document Workflow Management area, without which growth in the first half of the year would have been 13.2%. FP continues the implementation of new hardware and software started in the first quarter of 2023.
In Business Process Management & Automation, FP again grew in all areas. The launch of the e-justice software application eBO in June 2023 added solutions for businesses in e-justice communication. In Shipping&Logistics, FP continued the internationalization of its SaaS solutions with the launch of FP Parcel Shipping in the Netherlands in April, following Norway in Q1. In the case of solutions for internal logistics and parcel receipt management, FP continued new customer onboarding, primarily internationally.
Revenue in the Mailing, Shipping & Office Solutions area increased by 2.4% to EUR 75.0 million compared to EUR 73.3 million in the same period of the previous year, which was characterized by positive one-time effects from the postal rate change in Germany of EUR 2.9 million.
As expected, revenue in the Mail Services business area relating to the collection, franking and consolidation of business mail fell by 15.0% to EUR 34.0 million, compared with EUR 40.0 million in the prior-year period. Revenue in the prior-year quarter was higher than usual due to pandemic-related non-recurring effects amounting to EUR 10.0 million.
Transformation program FUTURE@FP is paying off
Carsten Lind, CEO of FP, stated: " During the first half of the year, we experienced growth in both the Digital Business Solutions and the Mailing, Shipping & Office Solutions area. This achievement is notable, considering that the previous year’s comparable period included positive one-time effects. Our ongoing investments and the expansion of our product and solution offerings are reinforcing our foundation for sustained, profitable growth, and a lasting increase in the value of our company”.
FP achieves EBITDA margin of 12.3 percent
In the first half of 2023, the FP Group generated EBITDA of EUR 15.3 million compared to EUR 16.3 million in the same period of the previous year, the EBITDA margin was 12.3%. The result was mainly influenced by the investments in new technology, the expansion of capacity for software development, and the ERP/CRM project. The currency impact on EBITDA in the first half was negative with EUR 0.5 million whereas in the same period of the previous year there was a positive currency impact of EUR 2.1 million. EBITDA in the prior-year period included also positive one-offs of EUR 2.6 million.
Personnel expenses increased by 8.9% to EUR 33.8 million, compared with EUR 31.0 million in the prior-year period, mainly as a result of the acquisition of the operating companies of the Azolver Group and the expansion of software development capacity. By contrast, the cost of materials decreased by 9.4% to EUR 58.5 million in the first six months, compared with EUR 64.6 million in the prior-year period, primarily as a result of lower revenue in the Mail Services business area. Other operating expenses increased by 9.4% year-on-year to EUR 20.9 million in the first half of 2023. The increase was mainly due to external costs for the ERP/CRM project, personnel-related costs, and costs for repairs and maintenance.
Depreciation, amortization and impairment losses decreased by 11.4% to EUR 8.8 million. EBIT increased slightly to EUR 6.5 million compared to EUR 6.4 million in the previous year. As a result of a decline in net interest and financial results, net profit reached EUR 3.3 million euros compared to EUR 5.2 million euros in the same period of the previous year. Earnings per share (EPS) amounted to EUR 0.21, compared with EUR 0.32 in the same period of the previous year.
Forecast confirmed for 2023
Ralf Spielberger, CFO of FP, explains: "Our business performance in the first half of 2023 has been robust and in accordance with our projections, reaffirming our confidence in the fiscal year forecast. Furthermore, we've achieved a significant milestone in our FUTURE@FP initiative with the successful go-live of the new ERP/CRM system in our first operating entities, and we are pushing ahead with the further implementation at full speed."
2023, the FP Group will continue to drive forward the transformation. Developments to date confirm that the FUTURE@FP program is heading in the right direction. The Management Board confirms the forecast for the current year. After the previous year was characterized by a number of positive one-time effects, the Management Board expects revenue of EUR 245 to 255 million for fiscal year 2023 on the basis of normalized revenue of EUR 229 million and normalized EBITDA of EUR 26.2 million in 2022. EBITDA is expected in a range of EUR 28 to 31 million. The expected development of the financial performance indicators for the financial year 2023 is generally based on the assumption of constant exchange rates.
Key figures at a glance:
|in EUR million||H1 2023||H1 2022||Change|
|Revenue as reported||124.6||127.6||-2.3%|
|Cost of materials||58.5||64.6||-9.4 %|
|Employee benefit expenses||33.8||31.0||+8.9 %|
|Other expenses||20.9||19.1||+9.4 %|
|EBITDA as reported||15.3||16.3||-6.3 %|
|Amortisation, Depreciation and Impairment||8.8||9.9||-11.4 %|
|Consolidated profit||3.3||5.2||-35.4 %|
|Earnings per share (in EUR)||0.21||0.32||-52.3 %|
|Free Cashflow||5.5||7.4||+25.4 %|
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Francotyp-Postalia Holding AG, a listed company based in Berlin, is the holding company of the globally operating FP Group (FP). FP is an expert in solutions that make office and work life easier and more efficient. FP has the following business areas: Digital Business Solutions, Mailing, Shipping & Office Solutions and Mail Services. In the Digital Business Solutions business area, FP improves customers' business processes with solutions for document workflow management, business process management & automation and shipping & logistics. In the Mailing, Shipping & Office Solutions business areas, FP is the world’s third-largest provider of mailing systems and is also the market leader in Germany, Austria, Scandinavia and Italy. FP has subsidiaries based in 15 countries and is represented by its own trading network in many other countries. In the Mail Services business areas, FP offers the consolidation of business mail and is among the leading providers in Germany. In 2022, FP generated revenue of more than EUR 250 million.