Francotyp-Postalia: Preliminary Results for Financial Year 2008
- Group revenue at 142.4 million euros slightly down on previous year
- Mailstream revenue up by around 80%
- Restructuring affecting results
- EBITDA reaches 17.5 million euros
Birkenwerder, February 24, 2009, Francotyp-Postalia Holding AG, a worldwide service provider for the outgoing mail market, has issued its provisional figures for the financial year 2008. Consolidated revenue came to 142.4 million euros, slightly down on the previous year's figure of 145.1 million euros. Revenue in the last quarter of 2008 reached 36.2 million euros, around the same level as the previous year.
The main factors for this downturn in revenue were the unfavourable exchange rates in the FP Group's foreign markets. Weakness in the US dollar, the British pound and the Canadian dollar had a negative effect on revenue amounting to around 4.9 million euros for the year. When currency exchange effects are factored out, total revenue came to 147.3 million euros.
Mailstream Reporting Strong Growth
The Mailstream segment developed convincingly in 2008. Revenue rose in 2008 to 15.4 million euros, compared to 8.5 million euros in the previous year. In this segment, the Company is concentrating on the German postal market, completely liberalized at the beginning of 2008, and is profiting from the early expansion of this part of its business.
In the Mailroom segment, expectations for 2008 were not fulfilled. The Company is reporting sales of franking and inserting machines totalling 127.0 million euros, compared to 136.6 million euros for the previous year. While sales fell especially in the USA, Canada and the Netherlands, Mailroom sales in Germany and the rest of the European market were stable, despite the unfavourable economy. In England, on the other hand, business has grown.
Restructuring Affecting Results
Earnings before interest, taxes, depreciation and amortisation (EBITDA) in the reporting year came to 17.5 million euros according to the provisional figures. This compares with 25.2 million euros for the previous year. When restructuring costs are factored out, the FP Group achieved an EBITDA of 21.5 million euros in 2008. Restructuring costs of 4.0 million euros include expenses charged to the MOVE Project, as well as compensation paid to former members of the Management Board.
With its MOVE program, the FP Group is currently improving processes in its Mailroom business. The Company intends to greatly reduce delivery times, at the same time cutting process costs in production and dispatch. In administration, too, the Company is streamlining processes in order to reduce personnel expenses.
Market Environment Remains Challenging
As of the beginning of this year, the recession continues to affect the FP Group's main markets. It is currently impossible to predict whether, and how quickly, the economy will improve in these markets during 2009. This means that no quantitative forecast can be made for the current financial year at present. The Mailroom segment as a new business area is particularly dependent on the global economy and how exchange rates develop. However, the fact that around two-thirds of revenue is based on recurring revenue does give the business a certain degree of overall stability. With its Mailstream segment and its integrated mail management solutions, the Company is profiting from the readiness of corporate customers to invest in cost-saving solutions which also provide greater efficiency.
Francotyp-Postalia Holding AG will be presenting its audited final results for the financial year 2008 on April 28, 2009.
Contact
Francotyp Postalia Holding AG
Sabina Prüser
Tel: +49 (0)3303 525 410
Fax: +49 (0)3303 53707 410
E-mail: s.prueser(at)francotyp.com
