March 26, 2018

2017 Annual Results and Q4 2017 Sales


2017 Full-year sales of €1.1 billion, down -4.1%, or -2.2% in organic terms
2017 Fourth-quarter sales down -10.0%, or -4.4% in organic terms owing to a decline in the EDS division
Current operating margin of 18.2% of sales
Net attributable income: €134 million up +13.2%
Cash flow after capital expenditure: €149 million
Proposed dividend in respect of 2017: €1.70 per share

Indications for 2018

Sales expected to decrease in organic terms
Current operating margin of approximately 18.0% at identical innovation effort levels

Commenting, Geoffrey Godet, Chief Executive Officer of Neopost, said: “Neopost reported a mixed trend in business activity in 2017. The pace of the downturn at SME Solutions slowed slightly, while Neopost Shipping posted double-digit growth. The increase in Enterprise Digital Solutions sales came to a halt at year-end, but the division’s customer base continued to grow and the share of sales related to services and maintenance is substantial. Enterprise Digital Solutions is thus expected to return to low growth in the coming quarters. While I will need more time to make a complete assessment of this business activity, we have already revised our sales approach.

The deterioration in sales in the fourth quarter should not mask the high levels at which Neopost successfully maintained its operating margin and free cash flow generation. Even though our sales will contract further in 2018 given the decline in mail-related activities, the Group’s rigorous financial management and high proportion of recurring sales constitute robust fundamentals. Having recently taken up my position, I will be taking advantage of the coming months to prepare our strategic plan for the next few years. The plan will be presented at the Investor Day, to be held before the end of our fiscal year. I am convinced that Neopost has the strengths required to succeed in the upcoming phase of its transformation.”