Neopost reports a slightly positive Third Quarter 2018
- Third quarter 2018 sales up +0.8%
- +0.2% organic growth, broken down as:
- Enterprise Digital Solutions: +12.0%
- Neopost Shipping: +12.6%
- SME Solutions: -1.7%
- Guidance unchanged for full-year 2018
Neopost, a global leader in digital communications, shipping and mail solutions, today announced third quarter 2018 sales (period ended October 31, 2018). Consolidated sales totaled €265 million, up +0.8%, or +0.2% on an organic basis, versus third quarter 2017.
Sales for combined Communication & Shipping Solutions activities grew +10.7% on an organic basis and now account for 31% of total sales, up from 28% one year earlier. Mail Solutions sales were down -4% on an organic basis, within the range observed in recent fiscal years. Recurring revenue grew +1.8% organically driven by new businesses. Recurring revenue increases as a share of Group sales, accounting for 71% of the total.
Sales for 9M 2018 totaled €792 million, down -3.5% on the year-earlier figure. Excluding currency and scope effects1, sales were almost stable (-0.2%).
Geoffrey Godet, Chief Executive Officer of Neopost, commented: “We delivered a relatively good performance in the third quarter. Double-digit organic growth in combined Communication & Shipping Solutions activities was in line with our expectations and helped to offset the decline in revenue from Mail Solutions. The contraction in Mail Solutions remains within the range observed in the past three years. Based on these results, we confirm our guidance for full-year 2018."