Neopost unveils its ambitious “Back to Growth” strategy for the period 2019-2022
Neopost, a global leader in mail solutions, business process automation, customer experience management and parcel locker solutions, unveils at its Capital Markets Day which is being held today, its new strategy for the period 2019-2022. Named “Back to Growth”, this strategy aims at expanding and growing the Group while accelerating its transformation to reach by 2022 a more balanced business profile designed to deliver sustainable and profitable organic growth going forward.
To achieve this strategy, the Group intends to:
- Reinvest in Neopost highly cash generative legacy Mail Related Solutions offering;
- Focus on four major solutions, including Mail Related Solutions as well as Business Process Automation, Customer Experience Management and Parcel Locker Solutions, in two main geographies, i.e. North America and main European countries;
- Seize bolt-on acquisition opportunities which, together with organic growth in selected business segments, will contribute to scale up the Group’s major offers;
- Streamline the Group’s organization to run the Major Operations in a more efficient and integrated way;
- Either grow, improve or divest the Group’s Additional Operations by no later than 2022;
- Adapt the Group’s shareholder return policy and allow for potential releveraging to gain flexibility in capital allocation.
Geoffrey Godet, Chief Executive Officer of Neopost, commented: "As part of our ambitious “Back to Growth” strategy, we intend to refocus the Group’s operations on a selection of four major solutions in a few main geographies. This involves shifting the organization of the Group from three independent business units operating a highly fragmented product portfolio into a more cohesive company, which is the best way to unlock synergies. We are convinced that concentrating our efforts on businesses offering the potential to be sizeable, growing and profitable offers the best warranty to successfully transform the company. This strategy requires more flexibility in our capital allocation policy to be able to seize M&A opportunities which, in turn, would contribute to rebalance our business mix, enhance the growth profile of the Group and create more value for our shareholders.”