InPost Group Reports Strong Q2 2024 Growth with Record Parcel Volumes and Network Expansion

InPost Group registered impressive revenue, profitability, and volume growth in the second quarter of 2024. The Group also continued to expand its network of Paczkomat^® devices across all key markets, ending the second quarter with 40,671 such devices, an increase of 29% year on year.

Rafał Brzoska, the founder and CEO of InPost

InPost Group maintained strong growth dynamics in the second quarter of 2024, achieving very good operational and financial results. At the group level, it’s been another quarter in which we’ve sustained volume growth above market. Revenue and profits also significantly increased. Furthermore, we accelerated the expansion of the Paczkomat^® device network – setting a quarterly record for installed devices by introducing over 3,000 new units.

In Poland, while remaining a market leader, we focus on maintaining the quality of our services. In the Mondial Relay markets, we continue to grow rapidly in the B2C segment and implementing the anticipated margin improvement. In the UK – our fastest growing market – we have accelerated growth compared to Q1 2024, with Q2 parcel volume increasing by a whopping 163% year on year. We continue to expand the InPost network dynamically. Notably, in the UK market, the InPost application was among the most frequently downloaded apps this year.

We consistently implement our strategy in every market, prioritizing network expansion while maintaining cost discipline.

KEY INFORMATION

• Parcel volume growth: The volume of parcels handled in Q2 2024 reached 264.4 million, a significant surge of 23% year on year. Both Poland and international markets witnessed growth of 20% and 29%, respectively.
• Group revenue: This marked another quarter with considerable revenue growth, which reached PLN 2.62 billion – an increase of 23% year on year. Especially robust results were observed in the Polish and British markets, supported by the increase in B2C segment revenue in markets where Mondial Relay operates.
• Considerable growth of adjusted EBITDA: Adjusted EBITDA for the Group reached PLN 887.3 million, signifying a rise of 29% year on year. Adjusted EBITDA margin reached 33.8%, a growth of 160 basis points compared to Q2 2023, principally driven by international markets.
• Positive free cash flows and reduction in net debt level: InPost achieved positive free cash flows (FCF) amounting to PLN 367.3 million at the Group level for the first half of 2024. In Poland, FCF reached PLN 623.4 million, representing 44% FCF / adjusted EBITDA conversion (41% in the corresponding period of 2023). This provides the means to finance the Group’s rapid expansion across Europe. The Group’s net debt ratio decreased from 2.22x at the end of 2023 to 1.95x at the end of Q2 2024.
• Further solidification of leading position in Poland: In Poland, in Q2 2024, InPost volume reached 170.4 million parcels, an increase of 20% year on year, exceeding e-commerce market dynamics. Revenue generated in Poland in Q2 2024 were by 22% higher year on year and reached PLN 1.579 billion. Adjusted EBITDA reached PLN 730.2 million (+18% year on year) with strong margins in line with forecasts. In the first half of 2024, Poland’s investment expenditure amounted to PLN 266 million, an increase of 5% compared to the previous year. Most of these investments were allocated to network and IT development. Continued expansion led to an increase in the number of Paczkomat^® machines users to 18.6 million by the end of Q2 2024.
• Strong growth in the B2C segment and margin improvement in Mondial Relay: The volume of parcels handled by Mondial Relay reached 64.9 million, translating into a growth of 9% year on year, despite the market falling by 1%. This was primarily due to continued robust growth in the B2C segment (+21% year on year). The adjusted EBITDA margin of Mondial Relay improved to 17% from 13% the previous year, thanks to volume growth, positive product mix effect, operational improvements, and cost discipline. Our network of Paczkomat^® machines grew by 80% to over 7,200, making Mondial Relay the largest network in France. Mondial Relay maintained the highest NPS on the market, and the level of satisfaction after delivery exceeds 70 points. Our mobile app enjoyed great popularity and has already had over 2 million downloads.
• More than double volume growth in the UK and Italy: In the UK and Italy segment, InPost delivered 29.1 million parcels in Q2 2024 (+119% year on year). Both markets recorded another profitable quarter at the adjusted EBITDA level. For the entire segment, adjusted EBITDA reached PLN 31.8 million in Q2 2024 compared to a loss of PLN 24 million the previous year. The adjusted EBITDA margin of the segment reached 10.4% in Q2 2024, an improvement both year on year and quarter on quarter due to better margins generated on each market.

A new quarterly record of 23.6 million volume was achieved in the UK. Revenue on the UK market tripled, reaching PLN 236.7 million in Q2 2024. The InPost network in the UK expanded to over 9,600 OOH points (+58% year on year), solidifying InPost’s position as the leading provider of Paczkomat^® machines in the UK. In Italy, parcel volume grew to 5.5 million (+28% year on year) in Q2 2024, and revenue reached PLN 68.5 million, a growth of 34% year on year. The OOH network in Italy expanded to over 7,600 points (+37% year on year).

OUTLOOK for 2024 & Q3 2024

So far in Q3 2024, we’re recording a 20% volume growth at the Group level. Volume in Poland is increasing at a rate in the teens, and the volume growth dynamics in international markets is similar to that of Q2.