Quadient (formerly Neopost) rolls-out its strategy and announces growth in sales and a solid current operating income1 in the first half of 2019
- First half-year of 2019 sales at €557 million, up by 5.5%, i.e. up 2.3% organically2
- First half-year of 2019 current EBIT1 at €93 million (+2.3%)
- First half-year of 2019 net attributable income at €47 million
- Upgraded sales growth outlook for 2019, outlook for recurring operating income1 refined between €180 and €185 million3 and confirmation of cash flow expectations
Quadient, a leader in business solutions for meaningful customers connections through digital and physical channels, today announced €557 million in consolidated sales for its first half -year of 2019 (period ended July 31, 2019), up 5.5% on the first half-year of 2018. Organic growth stood at 2.3%, excluding currency and scope effects linked to the acquisition of Parcel Pending and the divestments of Satori Software and Human Inference.
Major Operations (83% of total sales), gathering the Group’s four major solutions across the two main geographies, i.e. North America and the Main European countries, show a 1.1%-organic growth in total sales. This performance was driven by the 5.3% organic growth in North America, where each of the four major solutions is showing growth. The segment of the Main European countries recorded a 3.3%-decrease in sales, excluding currency and scope effects.
Moreover, Additional Operations (17% of total sales) posted a 8.2%-organic growth. This growth reflects the good performance in each one of the four major solutions in the other geographies4 while the other solutions are declining. The share of recurring revenues in total Group sales remains high and stands at 69%.
Geoffrey Godet, Chief Executive Officer of Quadient, commented: “A few months after having unveiled our ambitious strategic plan for the four years to come, we are very pleased to see that some of our initiatives are already paying off, as evidenced by our fifth consecutive quarter of positive organic sales growth. Synergies between our Major Solutions are starting to materialize. The slight growth recorded in our current EBIT before acquisitions-related expenses results from the combination of a tight control of our cost base and higher go-to-market, R&D and innovation efforts dedicated to support the growth of our new organisation. In the meantime, we made further progress in streamlining our portfolio of Additional Operations whereas Parcel Pending, acquired in January, is generating solid growth. In light of our good performance in the first half of the year we are upgrading our top line prospects for the full year. Finally, we are very proud of having adopted Quadient as our new corporate brand name, a new identity designed to encompass all our solutions and operations and giving life to the truly unified organization that has been implemented as part of our new strategy.”
Read the full release here.