Francotyp-Postalia releases first quarter figures for 2024

Berlin, June 7, 2024 – Francotyp-Postalia Holding AG (ISIN DE000FPH9000) increased its revenue from SaaS solutions in the first quarter of 2024 while overall revenue and earnings declined.

FP generated consolidated revenue of EUR 59.7 million compared to EUR 63.8 million in the same quarter of the previous year (- 6.4%). Earnings before interest, taxes, depreciation and amortization (EBITDA) reached EUR 6.6 million after EUR 8.7 million in the same period of the previous year (- 24.1%); the EBITDA margin thus reached 11.1%. Free cash flow amounted to EUR 9.1 million compared to EUR 4.5 million in the same quarter of the previous year. Net debt was further reduced and amounted to EUR 5.8 million after EUR 14.4 million at the end of 2023.

Revenue in the Mailing, Shipping & Office Solutions area fell by 5.7% to EUR 36.2 million. While revenue from product sales remained stable at the previous year's level, the after-sales business was impacted by the decline in mail volumes. Based on a business model that remains robust with high recurring revenue, the focus in 2024 will be on stabilizing the topline and improving cost structures. This also includes focusing on a more sustainable product range (circular economy).

As expected, the Mail Services division, which handles the collection, franking and consolidation of business mail, recorded a 6.4% drop in revenue to EUR 16.1 million. This also reflects the decline in mail volumes compared to the previous year.

In the Digital Business Solutions area, revenue declined by 9.9% to EUR 7.3 million in the reporting period. The decline in revenue is due to output management, which was impacted by the fall in letter volumes. The implementation of new hardware and software, which was completed at the end of 2023, expanded the range of services in order to automate and digitalize customer processes even more in future. The sales successes of recent weeks are reflected in the growing sales pipeline with new customer business, which will also have an impact on revenue over the course of the year. Sales of SaaS-based solutions are showing a pleasingly positive trend with an increase of 40%. The continuous expansion of functionalities and the simple and flexible integration into customers' business processes are making a significant contribution to the success of the solutions.

Focus on transformation program

FP CEO Friedrich Conzen says: "The development in the first quarter shows once again that we must press ahead with the transformation. By focusing on strengthening the value drivers in the business areas, flanked by the adjustment of cost structures and strict cash flow management, we will stabilize revenue and profitability in 2024."

CFO Ralf Spielberger explains: "As expected, the start to the new financial year was associated with challenges. Nevertheless, the company is showing a robust development, and we were once again able to significantly reduce debt."

Earnings per share of 0.17 Euro

In the first three months of 2024, the FP Group generated EBITDA of EUR 6.6 million compared to EUR 8.7 million in the same period of the previous year. The EBITDA margin was therefore 11.1%. Personnel expenses fell slightly by 2.9% to EUR 16.6 million compared to the previous year. The cost of materials also fell in the first three months, primarily as a result of the decline in revenue, by 5.9% to EUR 28.6 million. Other operating expenses fell by 5.8% to EUR 9.7 million in the first quarter of 2024 compared to the same period of the previous year.

Depreciation, amortization and impairments decreased as expected by 9.1% to EUR 4.0 million. EBIT therefore amounted to EUR 2.5 million compared to EUR 4.3 million in the previous year. Consolidated net income amounted to EUR 2.6 million compared to EUR -0.1 million in the same period of the previous year. Earnings per share (EPS) amounted to EUR 0.17 compared to EUR -0.01 in the same period of the previous year. The previous year's figures for the comparative period Q1 2023 were adjusted in connection with a correction in accordance with IAS 8.41 et seq. (The change is explained in note (9) of the notes to the consolidated financial statements for 2023).

Forecast for 2024 confirmed

Business performance in 2024 will continue to be influenced by the difficult macroeconomic conditions. In addition, market-specific developments in the mail market remain challenging. The transformation will therefore continue to be driven forward in 2024. Thanks to the realigned central project management and focus on clear value drivers, the Management Board expects the effects of the transformation to increase again over the course of the year. Against this backdrop, the Management Board expects revenue and EBITDA for the Group in the 2024 financial year to be at or slightly below the previous year's level. The expected development of the financial performance indicators for the 2024 financial year is generally based on the assumption of constant exchange rates.

Key figures at a glance:

Disclaimer

Statements in this release that relate to the future development and forecasts of the Group are based on our careful assessment of future events. Additional negative macroeconomic developments may result in the actual performance for the 2024 financial year deviating from the forecast figures.

For Investor Relations inquiries, please contact:

Dr. Monika Plum

Phone.: +49 (0)30 220 660 410

E-Mail: ir@francotyp.com

About Francotyp-Postalia:

Francotyp-Postalia Holding AG, a listed company based in Berlin, is the holding company of the globally active FP Group (FP). FP is an expert in solutions that make office and working life easier and more efficient. FP has the following business divisions: Digital Business Solutions, Mailing, Shipping & Office Solutions and Mail Services. In the Digital Business Solutions division, FP optimizes customers' business processes and offers solutions such as electronic signatures, hybrid mail, input/output management for physical and digital documents and data-driven automation of complex business processes. In the Mailing, Shipping & Office Solutions division, FP is the world's third-largest provider of mailing systems and the market leader in Germany, Austria, Scandinavia and Italy. FP is represented in 15 countries with its own subsidiaries and in many other countries with its own dealer network. In the Mail Services division, FP offers the consolidation of business mail and is one of the leading providers in Germany. In 2023, FP generated revenue of more than EUR 240 million.