Belgian national postal operator bpost has concluded a comprehensive review of its strategic vision and capital allocation to enable it to respond to evolving customer needs and lay strong foundations for a viable future. The review was aimed at driving the company’s business transformation, while staying financially disciplined and creating sustainable shareholder value. As a result, the group has launched the Connect 2026 strategy which aims to evolve the way the post operates.
According to bpost, over the past few years it has increased efficiency as a mail operator within Belgium while becoming a relevant actor in the parcels and e-commerce logistics space in Belgium, Europe and the USA.
Jean-Paul Van Avermaet, CEO bpost, commented, “The launch of Connect 2026 is a mind shift for our company for at least four main reasons. Firstly, it will allow us to continue to reinvent our company in order to put customer centricity even more at the heart of everything we do. Anticipating the evolving needs of the customers is what drives us and motivates us to create value from them.
“Secondly, it will allow us to invest in our omni-commerce logistics activities. This is our main engine of growth, thanks in particular to the great opportunities offered by Radial and Active Ants in e-commerce logistics. Active Ants, for example, will be opening a number of new sites in European countries, including Belgium.
“Thirdly, our new strategic vision more than ever puts the spotlight on our societal role, by underlining our willingness to develop new services and this as a planet-friendly and inclusive organization. As it is mentioned clearly in our Connect 2026 vision, bpost group wants to be the trusted guide to connect in a changing world for our customers, employees, citizens, companies, shareholders and governments.
“And last but not least, the launch of this ambitious strategic vision sets the guidance of a sustainable future for bpost group and all its employees, who give the best of themselves every single day.”
In order to sustainably secure future earnings growth, the organization says it is fully committed to countering mail volume decline by investing capex in parcels and e-commerce logistics growth activities. However, it notes that investment projects must pass strict investment criteria. These include attaining a minimum return surpassing the WACC by at least 2% while limiting the payback period. The group also stated that it is committed to active portfolio management where non-core assets could be identified and considered for disposal.
François Cornelis, chairman of the board of directors, concluded, “With this refreshed capital allocation framework, we have considered the perspectives of all our stakeholders. We have an important societal role to play in terms of securing long-term employment and guaranteeing quality of service while at the same time we need to meet the expectations of our financial counterparties with regards to sustainable returns on their investments in our group. Only disciplined capital management will well position bpost group to successfully drive its important transformation journey towards a global omni-commerce player.
“The new capital allocation policy has sought a fair balance between delivering sustainable shareholder returns and investing in our future through a focus on customers, people and growth. I am confident that the way we will deploy capital going forward will maximize value creation for all stakeholders over the longer term.”