TNT saw operating profit (EBIT) rise 2.6 per cent to 681m euros in the first half on sale up 9.6 per cent to 5.3bn euros. The business is now focused on its mail and express parcel operations following the sale of its logistics and freight businesses.
In the express business it is now looking for sales growth of around 15 per cent, with a balance of organic and acquisition growth producing an operating margin of nine to 10 per cent.
Strong revenue growth from the European Mail Networks in the first half year, has led TNT to increase its full year total revenue growth expectation for EMN from around 25 per cent to the range 30 per cent to 35 per cent. “The accelerated growth is accompanied by accelerated start up costs, particularly in UK packets and parcels. As a result we slightly revise our low-single-digit operating margin outlook for EMN to around break-even.”
TNT has been expanding its postal operations. In July it acquired a 25.1 percent stake in regional mail delivery company Nordwest-Mail in Bremen (Citipost Bremen). This gives it access to more than 400,000 households in the Greater Bremen area, as well as to the complete network of the Citipost alliance, the largest alternative mail delivery service in north-west Germany. Under the name ” Citipost “, the Nordwest-Mail has been a regional mail delivery enterprise in the Greater Bremen Area since 2005.
Mario Frusch, chief executive TNT Post Germany, said: “Citipost Bremen is a partner which understands the delivery business inside out and which is a powerful regional brand. We now can serve the ‘last mile for addressed mail to customers in the Bremen area. This brings us close to our goal of increasing TNT Post’s household coverage from currently more than 90 percent to 100 percent by the end of this year.”