PostNL's operating loss widens in first quarter; shares drop

By Johan BODINIER

(Reuters) -PostNL's loss widened in the first quarter from a year earlier, the Dutch postal operator said on Tuesday, hurt by a steep decline in mail volume and higher wage costs that undercut gains in parcel delivery and pressured profitability.

The company posted an operating loss before interest and taxes of 15 million euros ($17 million), compared with a year-ago loss of 9 million euros. However, it aligned with the company-compiled consensus of 15 million euros.

Revenue from parcels grew 3.5% to 581 million euros but wasn't enough to counter the 10 million euros year-on-year loss from declining mail revenue, which fell to 309 million euros.

A 31 million euro increase in organic costs, mainly related to wages, further impacted the company's performance.

PostNL, which operates in Belgium, the Netherlands and Luxembourg, maintained its 2025 guidance for operating profit roughly in line with last year and free cash flow at a loss. However, a weak first quarter highlights challenges for its new chief executive.

"We are mitigating the impact from changing market dynamics as much as possible," said CEO Pim Berdendsen.

Despite the headwinds, the company reiterates its commitment to pay the dividend through 2025.

The company's slow start will require "a strong finish", brokerage Degroof Petercam said, adding that stronger compensation will be needed through the year as the first-quarter REBIT fell short by a few million from 2024.

PostNL's stock fell 2.8% to hover near a record low and was down 17.08% year-to-date as of 08:34 GMT.​

($1 = 0.8831 euros)

(Reporting by Johan Bodinier in Gdansk; Editing by Sumana Nandy)