May 31, 2018

First quarter 2018 performance in line with the Group's expectations

  1. First-quarter 2018 sales down -9.7%, down -2.1% organically
  2. Enterprise Digital Solutions returned to organic growth: +6.7%
  3. Neopost Shipping recorded strong organic growth: +21.1%
  4. SME Solutions continued to decline organically: -4.3%
  5. Indications for fiscal 2018 unchanged

Paris, May 31, 2018

Neopost, a global leader in digital communications, shipping and mail solutions, today announced €249 million in consolidated sales for first-quarter 2018 (period ended April 30, 2018), down -9.7% versus first-quarter 2017. Excluding the strong negative currency effects, performance in the first quarter was -2.5%. Stripping out the scope effect of the disposal of DMTI Spatial, organic growth came out at -2.1%.

Organic growth amounted to +6.7% for Enterprise Digital Solutions and +21.1% for Neopost Shipping, while it was -4.3% for SME Solutions.

With +6.2% organic growth overall, Communication & Shipping Solutions accounted for 27.8% of total sales, up from 25.9% one year earlier. The contribution of new businesses pushed recurring revenue up slightly. As a result, recurring revenues accounted for 72% of total Group sales.

Geoffrey Godet, Chief Executive Officer of Neopost, commented: "Our revenue at the start of this year is in line with expectations. The Enterprise Digital Solutions division returned to growth and revenue was up sharply in Neopost Shipping. Within the SME Solutions division, the decline in Mail Solutions is in the range recorded over the last three years. All these factors allow us to maintain unchanged our full-year indications. "