- InPost Group continues to grow volumes, revenues and adjusted EBITDA in Q2 2024. Volumes and revenues increased by 23%.
- In the last quarter, InPost launched over 3,000 new devices, of which 800 machines were added in Poland.
- The company is implementing its strategy, prioritizing network expansion while maintaining cost discipline.
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InPost's revenues and volume up 23 percent
The volume of shipments handled in Q2 2024 amounted to 264.4 million, after a significant increase of 23% y/y. Both Poland and international markets recorded an increase of 20% and 29%, respectively.
– The consumer is becoming cautious. This is visible in Poland, but even more so in Western Europe: France or Great Britain. Customers are watching the money they spend more and more carefully, which is why they often direct their choices towards Chinese platforms. From InPost's point of view, the fact that customers divide their purchases into smaller ones and thus order cheaper things, but more often, is actually beneficial. As a rule, however, the consumer climate may become a challenge in the coming months. October will be key to knowing what the entire fourth quarter will turn out to be like, when most companies conduct their largest promotional campaigns – indicates Rafał Brzoska, President of InPost.
This is another quarter with an increase in revenues, which reached PLN 2.62 billion and increased by 23% year-on-year. The Group's adjusted EBITDA reached PLN 887.3 million, which means an increase of 29% year-on-year. The adjusted EBITDA margin reached 33.8%, which means an increase of 160 basis points compared to Q2 2023. This was mainly due to international markets.
InPost achieved positive free cash flow (FCF) of PLN 367.3 million at the Group level, for the first half of 2024. In Poland, FCF amounted to PLN 623.4 million, which corresponds to a 44% FCF/adjusted EBITDA conversion (41% in the same period of 2023). This allows financing the Group's rapid expansion in 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.
In Poland in Q2 2024, InPost's volume amounted to 170.4 million parcels, up 20% year-on-year – above the e-commerce market dynamics. Revenues generated in Poland in Q2 2024 were 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 H1 2024, capital expenditures in Poland amounted to PLN 266 million, up 5% year-on-year. Most of these investments were allocated to network and IT development. Continued expansion led to an increase in the number of Paczkomat® machine users to 18.6 million at the end of Q2 2024 and application users to 13 million. Loyal customers account for 68%. volume of InPost shipments in Poland.
We have also accelerated the expansion of the Paczkomat® network – in the last quarter we set a record in the number of machines deployed, launching over 3,000 new devices. Currently, half of the new devices under contract are machines without a touch panel, which have been very well received by customers. This reduces our costs, because machines without a screen are much cheaper than those with touch screens – comments Rafał Brzoska, founder and CEO of InPost.
Strong growth in the B2C segment and improvement in margins at Mondial Relay
The volume of parcels handled by Mondial Relay amounted to 64.9 million, which translates into an increase of 9% y/y, with the market decreasing by 1%. This was mainly the effect of further dynamic growth in the B2C segment (+21% y/y) with the entire market decreasing by -1%. Mondial Relay's adjusted EBITDA margin improved to 17% from 13% a year earlier thanks to the increase in volume, the positive effect of the product mix, operational improvements and cost discipline. The network of Paczkomat® machines recorded an 80% increase to over 7,200. Thus, Mondial Relay remains the largest network in France, and the mobile application has over 2 million downloads.
– In Poland, we focus on maintaining the quality of our services. In Mondial Relay markets, we continue to grow rapidly in the B2C segment and implement the announced margin improvement. In Great Britain – our fastest growing market – we accelerated growth compared to Q1 2024 – in Q2, the volume of parcels increased by as much as 163% y/y. We continue to dynamically expand the InPost network. It is worth emphasizing that on the British market, the InPost application was among the most frequently downloaded applications this year – adds Rafał Brzoska.
In the UK and Italy segment, InPost delivered 29.1 million parcels in Q2 2024 (+119% y/y). 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 a year earlier. The segment's adjusted EBITDA margin reached 10.4% in Q2 2024, which is an improvement y/y and q/q thanks to better margins generated in each of the markets.
InPost international shipments coming in autumn
A new quarterly record of 23.6 million volume was achieved in the UK. Revenues in the UK market tripled to PLN 236.7 million in Q2 2024. InPost’s UK network has expanded to over 9,600 OOH points (+58% y/y), strengthening InPost’s position as the leading Paczkomat® machine network in the UK. In Italy, parcel volume increased to 5.5 million (+28% y/y) in Q2 2024, with revenues reaching PLN 68.5 million, up 34% y/y. The OOH network in Italy has expanded to over 7,600 points (+37% y/y). Machine utilization in each of these markets is higher than in Poland, when InPost was at a comparable stage of development in our country. The company maintains that it will launch international shipping for e-shops later this year. The service is already in the testing phase.
Outlook for the rest of the year
So far in the third quarter of 2024, InPost has recorded a 20% increase in volume at the Group level, which is slightly above initial expectations. The volume in Poland is growing at a level of several percent, and the dynamics of volume growth on international markets is similar to that of the second quarter.