The InPost Group recorded a very successful start to the year. In the first quarter, there was a significant increase in sales, profitability, and the generation of free cash flow. The Group achieved another quarter of above-market growth in all key countries where it is present.
In the first quarter of 2024, we achieved strong financial results and high double-digit volume growth. We continue to grow faster than the market in all countries where we operate. We are very proud of our achievements – we see the effectiveness of our strategy both in Poland and abroad. In Poland, despite our leading position, we are still increasing our market share. In the countries where Mondial Relay operates, this is a notable achievement as we are operating under conditions of shrinking e-commerce trade. In the UK, we are strengthening our proven logistics concept, which ensures significant volume growth and increases profitability as the scale of operations grows. Q1 2024 brought a clear business development in line with our ambitions. We remain focused on strategic priorities: expanding our reach to users in Mondial Relay’s operating areas, expanding the network of Paczkomat® devices in the UK, and further increasing our market share in Poland. We are confident that our forecasts and strategy for the entire year will be realized. – Rafał Brzoska, Founder and CEO of InPost
KEY INFORMATION
- Parcel Volume Growth: Volume in Q1 2024 reached 242.6 million parcels, with a significant increase of 22% year-on-year. Growth was recorded both in Poland and international markets, at 20% and 26% respectively.
- Group Revenues: Q1 was another quarter of strong revenue growth, which increased by 21.5% to 2.43 billion PLN. Particularly good results were noted in the Polish and UK markets, supported by revenue growth in the B2C segment in markets where Mondial Relay operates.
- Significant Increase in Adjusted EBITDA: The Group’s adjusted EBITDA reached 760.1 million PLN, an increase of 36.4% year-on-year. The adjusted EBITDA margin reached 31.3%, an increase of 340 basis points compared to Q1 2023.
- Positive Free Cash Flow and Reduction in Net Debt: InPost achieved positive free cash flow (FCF) of 213.2 million PLN at the Group level. In Poland, FCF amounted to 459.3 million PLN, corresponding to a 68% FCF / adjusted EBITDA conversion (56% in Q1 2023). This allows for the financing of the Group’s rapid expansion in Europe. The Group’s net debt ratio decreased from 2.2x at the end of 2023 to 2.0x at the end of Q1 2024.
- Strengthening Leadership Position in Poland: In Q1 2024, the volume of parcels handled by InPost reached 159 million, a 20% year-on-year increase, significantly above the growth of the e-commerce market.
- Mondial Relay – Strong B2C Growth: Mondial Relay’s parcel volume reached 61.6 million, a 9% year-on-year increase in Q1 2024. This was mainly driven by continued dynamic growth in the B2C segment. Mondial Relay also slightly improved its adjusted EBITDA margin year-on-year, achieving this despite investments and expenditures on gaining market share.
- Profitability Improvement in the UK and Italy: In the UK and Italy, InPost delivered 22 million parcels in Q1 2024 (+114% year-on-year). The UK and Italy recorded another profitable quarter at the adjusted EBITDA level, which for the entire segment amounted to 14.7 million PLN compared to a loss of 46.2 million PLN a year earlier.
OUTLOOK for 2024 & Q2 2024
The InPost Group maintains its 2024 forecasts presented with the 2023 results. So far, in Q2 2024, we are recording a 20% volume growth at the Group level. This reflects varied trends in different segments compared to Q1 2024. Volume in Poland is growing at a double-digit rate, while international volume is growing faster than in Q1.
