Francotyp-Postalia Reports on 1st Quarter 2009
- FP Group achieves revenues of 34.2 million euros
- Company reports EBITDA result of 5.3 million euros
Birkenwerder, 28th May 2009. Francotyp-Postalia Holding AG, a service provider active worldwide in the outbound mail market, achieved revenue of 34.2 million euros for the first quarter of 2009. This compares with 36.8 million euros for the same period in 2008.
In its Mailroom segment, the FP Group faced an extremely difficult environment. Yet despite this, the Company achieved revenue of 30.1 million euros for the first three months of 2009, compared to 32.9 million euros in the same period last year. This relatively moderate decline in revenue in what is the most severe recession of the post-war era underlines the inherent strength of the FP Group’s business model. Two-thirds of revenue is generated by repeat sales, mainly from service contracts covering over 267,000 franking machines currently in operation worldwide, all in regular need of consumables, as well as from its rental business. Accounting for 20.8 million euros, after-sales business remained at the same level as in Q1 2008.
The high level of after-sales business has proved a major stabilizing factor, particularly in Germany, the Company’s most important market. Here, Mailroom sales for the first quarter of 2009 reached 11.3 million euros, compared to 11.7 million euros for the same quarter of last year. The FP Group has a market share of 44 percent, making it the clear leader in its home market.
In its Mailstream segment, the FP Group experienced a slight improvement in revenue in the first quarter of 2009, increasing to 4.1 million euros. This compares with 3.9 million euros for the same period last year. In this segment, the Company’s subsidiary freesort accounted for 2.9 million euros, while its subsidiary iab added a further 1.2 million euros. While business with existing customers remained stable, freesort is reporting a noticeable reluctance by customers to enter into new contacts, because of uncertainty about the extent and length of the recession. “The interest that customers show remains high, because our solutions improve their overall cost situation,” explained Andreas Drechsler of the FP Group’s Management Board. “But many potential customers are holding back and waiting for greater clarity before investing. However, their interest shows that FP Group is definitely on the right track following its strategy change to become a provider of mail management services.”
Falling Costs in Research and Development and Personnel
The FP Group has now completed several areas of restructuring. Already in the first quarter of 2009, streamlining its Research and Development activities and administration have resulted in lower costs. Research and Development costs fell by 0.6 million euros to 2.2 million euros, while personnel expenses were down by 0.8 million euros to 13.6 million euros. However, the decline in revenue during the first quarter of 2009 did have a negative effect on results. EBITDA – earnings before interest, taxes, depreciation and amortisation – came to 5.3 million euros in the first quarter of 2009, compared to 6.8 million euros for the same period of the previous year – in other words, down just 1.0 million on 2008. That means that despite exceptionally difficult conditions, the FP Group still achieved a double-digit profit margin. Consolidated net income remained largely unchanged at -2.0 million euros, compared to -1.8 million euros for the first quarter of 2008.
Company Planning Further Measures to Optimise Results
The global recession will determine operating conditions for the FP Group during the quarters ahead, too. In particular, new business in both the Mailroom and Mailstream segments is feeling the pinch. “The positive effects achieved through restructuring, the potential in our mail management segment and the high level of after-sales business ensure that the FP Group is well-prepared, even for a long period of recession,” commented CFO Hans Szymanski. However, the uncertainty resulting from the economic crisis makes it impossible to give an accurate forecast for the whole financial year 2009. In view of the extremely difficult environment, the Management Board is planning additional measures to further improve the Company’s results situation.
Contact
Francotyp Postalia Holding AG
Investor Relations
Sabina Prüser
Tel: +49 (0)3303 525 410
Fax: +49 (0)3303 53707 410
E-mail: s.prueser@francotyp.com
