Executive summary Q3 2024
- Dynamic volume increase: The Group's parcel volume reached 262.5 million, representing a significant YoY increase of 25%. Both Poland and InPost's international markets(1) contributed to this growth, recording YoY improvements of 21% and 32%, respectively.
- Strong revenue growth: The Group delivered another quarter of substantial revenue growth, reaching PLN 2,535.2 million and marking a 22.6% YoY increase (25% ex. FX effect). Particularly strong performances were observed both in Poland and the UK, as well as in the B2C segment in the Mondial Relay markets.
- Robust Adjusted EBITDA increase: Group Adjusted EBITDA reached PLN 852.7 million in Q3 2024, representing an increase of 33.4% YoY. Adjusted EBITDA margin reached 33.6%, a rise of 270bps compared to Q3 2023. The growth in profit margin was mainly driven by the international part of the business.
- Accelerated investments: Total Group capex for the first nine months of 2024 reached PLN 986 million (+40% YoY), of which c. 70% was allocated to APM network expansion, primarily in international markets. The capex-to-revenue ratio rose to 13%, up from 11% last year.
- Strong FCF and further deleverage: InPost achieved positive FCF of PLN 578.9 million at the Group level in the first nine months of 2024. In Poland, FCF amounted to PLN 1,002.1 million, corresponding to a 47% FCF/Adjusted EBITDA conversion. This positive performance has allowed for the financing of the Group's rapid network expansion in the rest of Europe. The Group's net leverage decreased to 1.9x at the end of Q3 2024 - down from 2.2x at the end of 2023.
- Poland's volume above market growth while maintaining high margins: In Poland, during Q3 2024, InPost volume was 170 million parcels, up by 21% YoY, which is well above the growth of the e-commerce market.(2) The Adjusted EBITDA reached PLN 710.9 million (+21% YoY), with margins remaining strong at 46.0%, and in line with our outlook.
- Mondial Relay delivers strong B2C and C2C while further improving profitability: Mondial Relay parcel volume amounted to 62.3 million (+17% YoY), primarily driven by a further dynamic increase in the B2C segment (+24% YoY), while also C2C was exceptionally strong (+10% YoY). Mondial Relay Adjusted EBITDA margin improved to 15.2% from 9.6% a year ago on the back of scale, product mix effect and operational improvements.
- UK and Italy with impressive performance: In Q3 2024, the UK and Italy segment successfully delivered 30 million parcels - a record high quarterly result. Both markets recorded another profitable quarter on the Adjusted EBITDA level. For the total segment, Adjusted EBITDA reached its highest ever level with of PLN 39.8 million in Q3 2024 (12.5% Adjusted EBITDA margin), compared with a loss of PLN 7.3 million a year earlier.
- Trading update Q4: So far, in Q4 2024, we see volume growth of mid-teens in Poland compared to same time last year and at c. 20% outside Poland. At the Group level we see volume increase of high teens YoY.
(1) Countries included: France, United Kingdom, Italy, Spain, Portugal, Belgium, Netherlands and Luxembourg.
(2) Company data, market reports.
Rafal Brzoska, Founder and CEO of InPost Group, commented:
"Last quarter saw just another period of strong growth and strategic progress for InPost, with Group parcel volumes increasing 25% year-on-year. Our expansion efforts have resulted in significant contributions from both Poland and international markets. We are accelerating our APM network growth, having deployed a record 3,000 new lockers in the last quarter and over 10,000 in the past twelve months.
In Poland, we continue to strengthen our leadership position, achieving above- market growth while maintaining high margins. Last month, we opened Poland's largest and state of the art sorting hub with a sorting capacity of way over one million parcels per day.
Mondial Relay also posted great results, with double-digit volume growth and a substantial rise in Adjusted EBITDA, driven by robust performance in both B2C and C2C segments. In the UK, we achieved record high volumes and good margins. Our recent acquisition of Menzies enables us to fully control UK logistics, enhancing our service offering with high-quality, next-day B2C delivery capabilities.
As we head into the important fourth-quarter peak, we are relentlessly focused on keep delivering with the best user experience and quality, and to capitalise on the continued volume momentum we're seeing into Q4."
Press release:
https://inpost.eu/sites/default/files/2024-11/InPost%203Q%202024%20press%20release.pdf
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