In the last quarter report, InPost recognized 600.9 million euros in revenue and 77.1 million euros in adjusted EBITDA from the French operator Mondial Relay, acquired in the middle of last year. .
InPost, with a lower margin in Poland, is also growing outside of Allegro
The largest market for InPost remains Poland. In the last quarter, the company recorded earnings increases here that were well below the average of the past two years: revenues increased by 17 percent. at 911.6 million euros (the two-year average is 49 percent), and adjusted EBITDA – by 8 percent. to €376.6 million (the two-year average is 61%). On the other hand, the operating margin fell from 44.8% to 41.3%.
The company from January to March this year. delivered 112.1 million parcels in Poland, up 16%. More than a year ago. In the presentation, she pointed out that the volume of shipments from outside of Allegro was greater than that of Allegro, and its total growth was greater than the dynamics of the entire Polish e-commerce market, which amounted to 15%.
InPost already has 21.6 thousand. Parcel lockers
At the end of March, InPost had 17,357 parcel lockers in Poland, which is 6% more. more than at the end of last year The company said that for the quarter it launched 912 new machines with nearly 170,000 parcel lockers, more than double all competitors. There are on average 148 boxes in each parcel locker.
InPost, in three months, gained 2,000 people for cooperation in Poland. sellers, currently supports 40 thousand. such entities.
In the UK, the number of InPost parcel lockers increased from 433 to 3,582 for the quarter (that’s 14% more). The company’s quarterly influence in the UK and Italian markets increased year-on-year from €11.1 million to €29.6 million, and adjusted EBITDA loss s increased from 17.9 million euros to 44.6 million euros.
The company pointed out that in Britain, its turnover increased with a decline in the local e-commerce market by 23%, and in France – with a decline of 16%. In the latter country, it had 651 parcel machines at the end of March, more than double the number at the end of last year.
Capital expenditure for the last quarter amounted to 308 million euros, compared to 158.6 million euros a year ago.
Excluding the Mondial Relay acquisition, InPost’s adjusted EBITDA slightly decreased from €332.2 million to €332 million, while operating margin decreased from 41.9 to 35.3%.
On the other hand, Mondial Relay increased in the first quarter not only InPost’s turnover and EBITDA, but also the 12-month net debt to EBITDA ratio (from 2 to 3.3 times
Costs more than 100%. at the top
InPost’s operating expenses increased more than revenue – from €648.6 million to €1.345 billion, an increase of 107.4%. In value, the costs of external services increased the most – from 372.4 to 686.2 million euros.
Depreciation and amortization expenses decreased from 118.7 million euros to 206.5 million euros, and salary expenses – from 114.7 million euros to 151.8 million euros.
The operating result increased from 144.5 to 196.8 million euros, and with a decrease in financial inflows from 11.9 to 1.9 million euros and an increase in financial charges from 20 to 84, 3 million euros, the net result decreased from 93.8 to 68.8 million euros.
In November, InPost will increase Allegro’s price list
Rafał Brzoska, the president of InPost, announced during a conference call with journalists on Wednesday that company at the beginning of November this year. will introduce a double-digit increase in service prices for Allegro.
– The agreement with Allegro was negotiated two years ago, it is a seven-year agreement, which provides for price indexation every year, at the same time, at the same time, that is to say beginning of November, from November 2022, based on two indicators: inflation and the increase in labor costs – he explained.
– The increase will take place in November, in accordance with the formula negotiated two years ago. Let me remind you that for two years, also under this 7-year contract, Allegro, despite the fact that the rest of the market had a price increase, avoided this increase. In November, based on current inflation levels, there will be a double-digit increase for our main partner – he described. In 2021, Allegro’s revenue was 46%. InPost’s turnover in Poland.
Early April and May of this year. InPost raised the prices for deliveries to parcel lockers and couriers twice, the increase affected both individuals and businesses.
– For today, we do not expect any further increases in the current crude oil price. If we have seen a tragic scenario that JP Morgan is predicting, that is, oil at the level of 180-190 USD per barrel, then indeed we will have to think about it at this point – said the head of InPost.
According to Adam Aleksandrowicz, vice president of InPost, the effect of the increase in service prices will be visible in the form of an improvement in the EBITDA margin in the fourth quarter of this year.
– Remember that the increases that have taken place concern only a part of the customers, and that this is a relatively small base. Due to the fact that Allegro and other platforms or large merchants have different laws regarding contractual regulations regarding the timing and extent of the increase – he underlined.
– As mentioned by the President, the magnitude of the increases in relation to certain large customers can paradoxically be much higher than the increases that have taken place so far in the case of small, medium or non-contractors. However, the timing of this increase is regulated by the contract. Therefore, these increases will be phased in over the course of this year and early next year. Therefore, the actual impact on prices will be visible at the end of the year, in the fourth quarter, Aleksandrowicz announced.
Brzoska: more expensive fuel at the expense of courier deliveries
According to Rafał Brzoska, rising fuel costs will encourage customers to use parcel vending machines more.
– We strategically believe that online will continue to grow. This year we are dealing with a slowdown in Q1, Q2 and Q3, we can see a decline in pace or a nominal decline in the e-commerce market in most global markets. This is already visible in the modified forecasts of many foreign e-commerce companies such as Amazon, he said.
– Of course, it’s a matter of inflationary pressure. But most of them say in their reports that logistics costs are rising in line with rising oil prices. If we look at which direction the EU will go and the embargo on Russian oil will continue, he added. – Unfortunately, fuel prices will increase, which means that for most e-retailers, the cost of logistics will be the main driver of deteriorating profitability or even slowing the rate of growth – he predicts.
– InPost, being an operator in 9 European markets, has a gigantic opportunity and it is our conviction that in the next two or three years, we will see this development opportunity significantly increase our exposure to online. We can become a key partner for most of them. Because everyone who has promoted home courier delivery will reverse this trend at an accelerated pace and encourage customers to use pick-up points and parcel vending machines – describes Rafał Brzoska. – The first quarter shows that more and more foreign customers are accelerating integration with InPost in order to reduce the costs of courier deliveries as quickly as possible – he added.