InPost beats earnings estimates, shares jump

Investing.com -- Shares of InPost (AS:INPST ) jump after it reported a 29% increase in its earnings for the second quarter, beating market estimates. The company reported an adjusted EBITDA of PLN 887.3 million for the quarter, exceeding the PLN 827 million expected by analysts.

At 5:57 am (0957 GMT), InPost was trading 7.4% higher at €17.20.

InPost's robust performance is attributed to the growing popularity of its automated lockers in Poland, a surge in online shopping due to the pandemic, and its expansion into international markets.

Although InPost maintained its expectation that 2024 parcel volumes would exceed market growth across its regions and reaffirmed its financial goals for the year, it revised its forecast for e-commerce market growth. 

Analysts from Barclays view the second quarter results as very solid, noting stronger-than-expected performance in Polish volumes, significant improvements in MR margins, and robust growth in the UK and Italy. 

Operating in nine countries, InPost delivered 264 million parcels in the quarter, marking a 23% increase from the previous year. Its network of automated parcel machines (APMs) expanded by 29% to 40,671 units, with international APMs increasing by 59% to 17,201.

UBS analysts emphasize that the results not only exceeded expectations but also set a positive tone for the future. 

So far in the third quarter, parcel volumes have risen by about 20%, with Poland seeing mid- to high-teens percentage growth and international volumes maintaining a similar growth rate as the second quarter.

Jefferies analysts also flag that InPost’s strong second quarter results, including a 7% EBITDA beat and robust performance across regions, position the company well for future growth. They note that the positive third quarter outlook further supports the likelihood of upward revisions in full-year forecasts and increased investor interest.

In Poland, parcel volumes grew by 20% in the second quarter, driven by a 50% increase in door-to-door courier deliveries from international marketplaces. In Britain, where InPost acquired a 30% stake in British logistics firm Menzies last year, parcel volumes surged by 163%. 

The adjusted EBITDA for the international segment was a profit of PLN 31.8 million, as compared to a PLN 24 million loss reported in the same period last year.

Source: Investing.com