Preliminary unaudited financial results for 2020
InPost - a leader among e-commerce delivery platforms in Europe - plans to acquire Mondial Relay, a leading French e-commerce parcel delivery platform, for approximately EUR 565 million (approx. PLN 2.6 billion). In this way, InPost will significantly expand its scope of operations, accelerating its international growth and strengthening its position as a leading player in the European e-commerce delivery market. The transaction will be finalised after receiving the opinion of Mondial Relay's works council and subject to regulatory approvals. Bridge financing for the transaction over a period of 365 days will be provided by a syndicate of seven banks. The company expects to close the transaction by the end of the second quarter of 2021. In the 12 months of 2020, Mondial Relay generated sales revenues of €437 million and generated approximately €60 million in EBITDA.
Preliminary unaudited financial results of Integer.pl [1] for 2020:
- 104% year-on-year increase in revenue to PLN 2.532 billion
- 184% year-on-year increase in EBITDA to PLN 994 million - EBITDA margin of 39.3%
- Shipment volume growth in 2021 higher than expected
"The planned acquisition of Mondial Relay in France is the implementation of the strategy announced during the IPO at EURONEXT Amsterdam and one of the largest foreign investments of a Polish company in history. International expansion is a key element of InPost's development, and Mondial Relay will give us a presence in one of the largest e-commerce markets in Europe. This is a quantum leap in our growth and increases the value of the company. We closed an excellent year for InPost in 2020, in which we delivered 310 million parcels and increased our network by almost 50%. This incredible operational growth translated into a very strong financial performance. In 2020, we doubled our revenue, increased EBITDA by 184% and improved cash flow conversion to 38%. This momentum continues in 2021, with parcel volumes in the first two months of the year more than doubling compared to the same period last year. Long-term growth prospects lie ahead - we are a pioneer of last mile solutions for e-commerce." - underlines Rafał Brzoska, CEO of InPost .
"Mondial Relay's extensive network of more than 15,800 pick-up and drop-off points fits perfectly with our innovative network of machines. We see this combination as an opportunity to unlock untapped demand and redefine last mile delivery. With this transaction, InPost can become the leading pan-European operator of e-commerce delivery solutions, significantly accelerating access to convenience for consumers, e-tailers, business partners and the environment." - adds Michael Rouse, managing director responsible for international markets at InPost
Mondial Relay - founded in 1997, is the leading parcel provider for e-commerce in the European market. It has around 15,800 pick-up and drop-off points ("PUDO") in France, Benelux and the Iberian Peninsula (as of February 2021). In France, it is the second largest network with 11,000 points and 4 distribution centres. In 2020, it handled 131 million parcels - making it the largest independent player in France by volume. Mondial Relay serves many of the largest e-commerce platforms in France, as well as individual retailers. In 2020, Mondial Relay achieved revenues of €437 million and EBITDA of €60 million.
Assumed strategic effects of the acquisition:
- Significant acceleration of InPost's international expansion
- consolidation of its position as Europe's leading e-commerce parcel provider
- Increased volumes handled - 440 million pieces in total by 2020
- increase in geographical coverage and service network to 28,000 points
- entering one of the largest and most attractive e-commerce markets, the third largest in Europe, with the acquisition of a fully integrated e-commerce delivery platform
- with an estimated value of ~€56 billion, the French e-commerce market is about 5 times larger than the Polish market, and also achieves one of the highest penetration rates in Europe for non-addressed delivery services, estimated at around 40%
- Access to Mondial Relay's extensive logistics network, pan-European trading relationships and customer recognition benefits
- the opportunity to unlock untapped demand and redefine last mile retail supply
- Exploiting the growth potential of e-commerce as a result of the COVID-19 pandemic
- an opportunity to increase the efficiency, speed and convenience of Mondial Relay's existing services, primarily through the deployment of the technologically advanced Paczkomat® network of devices and the use of InPost's innovation and experience
- Strengthening the "flywheel effect" and more green solutions for e-commerce deliveries
- The combination of Mondial Relay's market leadership and InPost's offering with a fully scalable, technology-based and efficient network will create an attractive new offering for consumers, e-tailers, business partners and cities in target markets
- Parcel Machine® deliveries mean significant environmental benefits, reducing pollution and traffic congestion and supporting e-tailers' sustainability policies
- compared with traditional door-to-door deliveries, Parcelcomat® reduces CO2 emissions by approximately two thirds in urban areas and by around 90% in rural areas
- the complementary and diversified portfolio of both companies will provide pan-European cross-selling opportunities
Assumed financial impact of acquisitions:
- Changing international scale, offering and market opportunities for InPost
- In 2020, Mondial Relay achieved revenues of €437 million. Once the acquisition is finalised, InPost's share of international revenue and EBITDA would increase to around 44% and 18% respectively
- an increase in Mondial Relay's EBITDA of around €100-150 million in the medium term compared to 2020
- Accelerating the development of Mondial Relay and increasing its value by:
- better use of the network - introduction of point-of-service equipment approaching saturation levels and integration of trading partners between multiple markets in Europe
- Expanding the network - using BIG DATA to deploy machines in new locations, increasing consumer convenience
- operational improvements - increased utilisation and automation of logistics centres and implementation of solutions proven by InPost in Poland
- leapfrogging InPost's financial performance, increasing cash flow and rapidly reducing debt levels. On a pro-forma basis, the net debt to EBITDA ratio will reach approximately 3.5x immediately after the transaction
- the priority will be to reduce debt to a net leverage of approximately 2.0 - 2.5x EBITDA in the 24 months following the transaction as a result of increased EBITDA levels and positive cash flow generation, while continuing to invest to support growth in existing and new key markets - primarily Poland, the UK and France
- Growth prospects in InPost's international segment
- An increase in the number of units to 2,000-3,000 in the short term and to 18,000-21,000 in the medium term, while the number of service points will remain stable
- international parcel volumes will increase to 455-555 million in the medium term, thanks to the deployment of Paczkomat® in the UK, France and other regions
- international revenues will reach PLN 4.8-5.9 md in the medium term, while the EBITDA margin will increase from a dozen to over twenty per cent, thanks to operational improvements and increased operating leverage
- accelerated growth in the international segment will be generated by capital expenditure (CAPEX) of 10-15% of international revenues in the medium term
The company's outlook for the domestic segment remains unchanged, according to the 20 January 2021 prospectus.
|
Outlook summary international |
in the short term |
in the medium term |
|
Number of Parcel Machines® (#) |
2,000-3,000 |
18,000-21,000 |
|
Number of service points (#) |
Maintaining a stable network of service points |
|
|
Parcel volume (million) |
180-195 |
455-555 |
|
Revenue (billion PLN) |
2,26-2,38 |
4,80-5,90 |
|
EBITDA margin (%) |
Several |
Twenty-some |
|
CAPEX (million PLN) |
250-320 |
10-15% of revenue |
Preliminary unaudited financials for 2020 [2]
- Total revenue and EBITDA increased by 104% and 184% year-on-year to PLN 2.532 billion and PLN 994 million respectively (EBITDA margin 39.3%). The EBITDA margin increased by 11 pp mainly due to operating leverage efficiency gains.
- In Poland, shipment volumes increased by 114% y-o-y to 308 million parcels, supported by a 50% y-o-y increase in the number of machines deployed to 10,776.
- International parcel volumes increased by 340% year-on-year to 2.2 million parcels, with a 27% .increase in the number of InPost devices deployed to 1,478.
- Capital expenditure for 2020 amounted to PLN 537 million, or 21% of revenue - an increase of 68% year-on-year.
- Cash flow of PLN 380 million, EBITDA cash conversion (pre-tax and excluding lease payments): 38%.
|
|
Financial year 2019 |
Financial year 2020 |
Year-on-year growth |
|
Number of Parcel Machines® (#) |
8352 |
12254 |
+47% |
|
of which: Poland |
7186 |
10776 |
+50% |
|
of which: international |
1166 |
1478 |
+27% |
|
Parcel volumes in Poland (million) |
144 |
308 |
+ 114% |
|
including: Parcel Machine® |
103 |
247 |
+140% |
|
of which: home delivery |
40 |
61 |
+53% |
|
International shipment volumes (million) [3] |
0,5 |
2,2 |
+340% |
|
Summary of financial results | |||
PLN million, unless otherwise specified
Financial year 2019
Financial year 2020
Year-on-year growth
Revenue
1243
2532
+ 104%
of which: Poland
1236
2514
+103%
of which: international
7
18
+153%
EBITDA
350
994
+ 184%
of which: Poland
376
1038
of which: international
(26)
(44)
EBITDA margin
28%
39%
Capex
(320)
(537)
+68%
% revenue
26%
21%
Cash flow (FCF)
35
380
+988%
Conversion [4]
10%
38%
Net leverage [5]
2.2x
2.4x
InPost Group's financial results for 2020 will be published on 30 March 2021.
InPost S.A ("InPost") is a leading delivery platform for e-commerce. Founded in 1999 by Rafal Brzoska in Poland, InPost has a network of more than 12,000 Paczkomat® machines, including more than 1,100 in the UK, and provides courier and fullfilment services to e-commerce merchants. In 2020, InPost processed 249 million parcels through the machines, working with more than 26,000 e-tailers. Strategically positioned in the fast-growing e-commerce ecosystem, it benefits from favourable market trends - allowing it to rapidly deploy new machines. InPost's Paczkomat® machines provide consumers with a cheaper, flexible, convenient, environmentally friendly and contactless delivery option. In this way, InPost creates the most environmentally friendly delivery solution for e-commerce - delivery to the machines reduces CO2 emissions by two-thirds compared to courier deliveries in urban areas and by as much as 90% in rural areas. In addition, it reduces congestion and provides a more convenient solution for delivering parcels to consumers 24 hours a day, 7 days a week and without having to wait at home. A highly efficient IT infrastructure and rapid implementation of new technologies underpin InPost's operations and growth. InPost mobile app " InPost Mobile " is one of the most popular apps in Poland with 6 million active users.
For more information visit: inpost.co.uk
[1] The results presented here relate to Integer.pl, a wholly owned subsidiary of InPost SA, which includes all operating entities of the InPost group in Poland and other geographical areas.
[2] The results presented are those of Integer.pl, a wholly owned subsidiary of InPost SA, which includes all operating units of the InPost group in Poland and other geographical areas, and net debt is presented on a pro-forma basis due to the reorganisation described in the Company's prospectus dated 20 January 2021
[3] Includes the UK and Italy. The number of Parcel Machine® devices in Italy remained constant in all periods considered, at 344
[4] (operating EBITDA - change in net working capital - CAPEX) / operating EBITDA.
[5] Net debt / operating EBITDA.
