La Poste Groupe’s results held firm in an economic climate that remained very challenging.
During the first six months of 2024, volumes for Mail – which since 2020 has accounted for less than 20% of the group’s total revenue – saw the pace of decline reach 10%. The group’s new local human services are doing well, with revenue up by 16% in first-half 2024. In the Parcels business, the wave of consolidation in the global market, combined with fiercer competition and higher transportation and wage costs pushed down margins. However, Colissimo and Geopost saw an increase in volumes, of 5.6% and 2.6% respectively.
La Banque Postale’s financial results contracted, against a high basis of comparison after an exceptional first half of 2023 for insurance activities. The group’s balance sheet structure and liquidity position are robust, and it has a high level of solvency. As the eurozone’s eleventh-largest bancassurer, La Banque Postale is continuing to transform its integrated full-service bancassurance model, both in France and abroad.
While adapting its postal coverage to closely meet customer needs, the Retail Customers & Digital Services business line saw positive sales momentum, particularly in bancassurance and mobile telephony, with La Poste Mobile’s subscriber base increasing to 2.4 million. In digital trust services, Docaposte launched the group’s first comprehensive cybersecurity offering that meets the needs of SMEs and regional authorities.
In terms of social and environmental responsibility, La Poste Groupe ranks among the best-rated corporations in the world, and has received SBTi certification in the areas of shipping, logistics and banking. Regarding HR matters, we signed the ten collective agreements required for setting up Social and Economic Committees in France, testifying to the quality of our employer-employee dialogue.
In recent weeks, our postal carriers once again demonstrated their efficiency and effectiveness, with the successful distribution of the print-based campaign material for the candidates in the French elections. I would like to thank all of La Poste Groupe’s postal workers for their dedication in carrying out the group’s missions on a daily basis.
We have transformed our strategic model, and today it is more diversified, more digital and more international. I have every confidence in La Poste Groupe’s ability to continue to grow and develop for the benefit of society as a whole.
Revenue¹: €17.0bn
-down 0.6% vs first-half 2023
-down 0.9% vs first-half 2023 at constant scope and exchange rates (like for like)
Operating profit²:
-€1,127m vs €1,166m in first-half 2023
-€1,079m excl. material non-recurring items(a), down €435m like for like vs first-half 2023
Attributable net profit:
-€495m vs €461m in first-half 2023
-€450m excl. material non-recurring items(b), down €272m like for like vs first-half 2023
Free cash flow³: €-261m
vs €-128m in first-half 2023
CapEx⁴ (excluding LBP): €634m
vs €638m in first-half 2023
External-growth spending⁶ (excl. LBP): €58m
vs €433m in first-half 2023
Attributable equity: €22.7bn
vs €22.4bn at 31 December 2023
Net debt: €12.4bn
vs €12.0bn at 31 December 2023
(a) Excluding the impact on operating profit of material non-recurring items: €48m positive impact in first-half 2024 vs €251m negative impact in first-half 2023.
(b) Excluding the impact on attributable net profit of material non-recurring items: €44m positive impact in first-half 2024 vs €171m negative impact in first-half 2023.
(1) Throughout the press release, “revenue” refers to all of the group’s top line earnings, comprising revenue from industrial and commercial activities plus La Banque Postale’s net banking income (which in turn includes net profit from CNP Assurances).
(2) Operating profits and losses for the group and business lines are presented after the share in net profit/(loss) of jointly-controlled companies throughout this press release.
(3) See Appendix 2 of this press release for definitions of alternative performance measures.
(4) Internal CapEx, i.e., purchases of property, plant and equipment and intangible assets
(5) Net of disposals.
The first half of 2024 saw inflation easing and interest rates starting to come down, as well as limited growth in Europe. Against this backdrop:
the structural decline in Mail volumes continued (down 10.3% on first-half 2023);
overall volumes of Parcel deliveries rose by 3.1% year on year to €1.3 billion, driven by increases in volumes for Geopost (up 2.6%) and Colissimo (up 5.6%);
La Banque Postale’s results contracted, against a high basis of comparison in first-half 2023 which had been lifted by several exceptional factors for insurance activities.
(1) A La Poste Groupe subsidiary and the leading network of lockers and pick-up points in France.
(2) An international sustainable building certification system.
(3) Subject to the customary conditions precedent, such as approval by the Brazilian competition authority.
• Carbon budgets are being put in place in the group’s business lines in order to manage emissions reductions in line with the group’s carbon reduction pathway and ensure rigorous management of the associated resources, costs and investments.
• All of the parcels delivered by Colissimo within Paris are carbon free, and the company is working towards achieving the same goal for the whole of Greater Paris by the end of 2024.
• The group is continuing to increase the number of electric vehicles in its fleet in Europe. At 30 June 2024, the fleet of electric vehicles managed by Véhiposte¹ totalled 23,531 and Geopost’s included more than 9,300 alternative fuel vehicles.
• In July, La Banque Postale signed a new partnership with the European Investment Bank to support French businesses in financing their mobility and energy transition projects, representing a total amount of €600 million.
• In July 2023, La Banque Postale launched its impact home loans offering to help customers carry out energy-efficiency renovation projects on their homes. Financing for acquiring homes with these types of projects has increased sixfold since then.
• On 1 January, through its subsidiary Recygo, La Poste set up the first collection and recycling offering for occupational clothing. This network will help companies comply with the new regulations in France that require occupational clothing to be sorted and recycled as from 1 January 2025.
• In line with the group’s values of trust and integrity, La Poste’s new data & AI charter was presented at VivaTech 2024.
• A major milestone was reached in the process of transforming La Poste’s employer-employee dialogue² with the signature of ten collective agreements, paving the way for Social and Economic Committees (SECs) to be set up by 31 October 2024.
• The new profit-sharing agreement, signed in June 2024, includes social and environmental responsibility indicators such as La Poste SA’s lost-time accident frequency rate and the group’s greenhouse gas (GHG) reduction rate.
• Care for carers: the group signed an amendment extending the agreement relating to postal workers who are carers, providing for specific measures to help them achieve a better balance between their working lives and role as carers.
• Term creditor insurance: CNP Assurances has announced that it will no longer charge excess premiums or apply insurance exclusions for breast cancer survivors. They will therefore now be able to take out term creditor insurance as soon as their treatment ends without having to wait for the statutory five-year medical history exemption period applicable in France.
La Poste is trialling a mobile post office model called "camions jaunes" in rural areas of five regions of France (Creuse, Gers, Jura, Haute-Marne and Orne).
This project clearly demonstrates the group’s determination to boost its presence in rural areas and, more broadly, help maintain public services throughout the country.
The route of the mobile post office has been defined in consultation with local councillors, taking into account demographic criteria and the distance from a point of contact.
• Recognition of La Poste Groupe’s leadership in ESG with the approval of its carbon emissions reduction targets by the SBTi in the areas of shipping, logistics and banking. The group is aiming for "zero net emissions" by 2040, a decade ahead of the goals set in the Paris Agreement.
• CNP Assurances was placed first out of the world’s 23 largest life insurers in the 2024 ranking published by the UK NGO, ShareAction, with a score of 51/100, thanks to its climate and biodiversity commitments.
(1) The fleet managed by Véhiposte does not include e-bikes.
(2) Scope: La Poste SA.
Global growth is projected to be around 3.2% in 2024 and 202538, weighed down by the elevated central bank rates that have been set in order to fight inflation. Eurozone growth is expected to be a contained 0.8%, with France’s economy growing 0.7%, driven by higher household spending as inflation eases.
Against this backdrop, in 2024 the group will press ahead with its strategic plan, “La Poste 2030, committed for you”, focusing on the following priorities:
La Poste Groupe will continue to carry out the public service missions entrusted to it and will pursue its aim of boosting its positive impacts for society as a whole by combining financial performance with its role of serving the public interest.