A pivotal period for the Hellenic Post Office (ELTA) was 2023 as opportunities and weaknesses were mapped, key competitiveness factors were identified, a new business plan was formulated and the reorganization processes were initiated to transform them into a modern and competitive market player.
Mainly, however, the losses were significantly reduced as a result of the interaction of a large volume of aggravating exceptional events from previous years, the benefit from the interruption of ELTA Energy’s commercial activity and the initiation of the transformation plan.
More specifically, the accounting of exceptional events of previous periods, doubtful debts and other negative factors, was marginally covered by the shutdown of ELTA Energy and the significant benefit this had in reducing the cost of goods sold. Indicatively, the extraordinary events that burdened the results of 2023 include the necessary investments to strengthen cyber security, the invoicing of consultancy activities for use 2022, the interruption of the commercial activity of ELTA Energy with the consequent risks and invoicing differences, and the deletion of compensation provisions of Universal Service of previous uses.
The cyberattack and the fine
Although it does not concern the year 2023, it is additionally stated that, in February 2024, the Personal Data Protection Authority imposed a fine of 2.995 million euros on ELTA for the 2022 cyber attack for which the Company had recognized a provision of 3 million euros already in the fiscal year 2022. ELTA appealed against the decision and on July 24, 2024 a temporary suspension of execution was issued until the issuance of a final decision of the SC on the suspension request.
New strategic planning
Strategically and with the aim of continuously improving customer service and the profitable development of ELTA, in 2023 the following were planned, decided and implemented:
-New business plan.
-Strengthening cyber security.
– System of permanent monitoring of all company goals.
-Interruption of the loss-making commercial operation of ELTA Energy.
-Partial staffing of administrative positions, given the limitations of the regulatory environment until then.
New operational organization for ELTA
At the organizational level, the reorganization of the network at 143 points throughout the country was completed and the gradual transition to the new sorting and distribution networks began. The company’s new strategy focuses on the concentration of service points, regardless of the number of physical stores.
Despite the fact that service-complaint indicators published by the National Telecommunications and Postal Commission (EETT) show that ELTA’s service is among the highest performing in the market, it is also true that the overall level of service, due to geomorphological constraints and relative costs , has significant room for improvement, which is a central core of ELTA’s strategic plan, for the benefit of the entire market.
Results
In summary, the financial course of the Group reflected in the Consolidated Financial Statements of 2023 was as follows:
The Turnover from continuing activities in 2023 rose at a consolidated level to the amount of 243,285 thousand euros against 249,765 thousand euros in 2022, showing a decrease of 3%. Turnover from continuing operations of the parent Company amounted to €188,069 thousand against €197,950 thousand in 2022, down 5%, reflecting the drop in letter work in line with market trends and declining Global Service forecasts compared to the previous period. It should be noted that the Turnover is reported after the removal of the sizes of ELTA Energy, which is the biggest factor in reducing the total turnover in relation to the corresponding nominal size of the Turnover in the 2022 financial statements. ELTA Courier recorded a turnover increase of 6% , as a result of a price policy adjustment and an increase in e-commerce clientele.
The Gross Result from continuing activities of the ELTA Group amounted to a profit of 30,244 thousand euros compared to a profit of 33,067 thousand euros in 2022. The Gross Result of the parent company from continuing activities amounted to a profit of 17,398 thousand euros compared to a profit of 25,125 thousand euros the previous year year, reflecting the impact of the corresponding decrease in turnover.
The Results before Taxes, Financial and Investment results and Depreciation from continuing activities of the Group amounted to profits of +15,873 thousand, amounting to 18,197 thousand Euros in 2023 compared to profits of 2,324 thousand euros in 2022, . In addition, for the parent company, profits amounted to 12,900 thousand Euros in 2023 from profits of 3,201 thousand Euros in 2022. The positive effect mainly concerns a reduction in administrative expenses, income from real estate valuation adjustments, while the negative one concerns expenses from previous years (one offs) and reviews of previous years of the Catholic Service.
The results before taxes from continuing activities of the Group were formed + 10,962 thousand, in losses of 6,903 thousand Euros in 2023 against losses of 17,865 thousand euros in 2022. The results before taxes from continuing activities of the company amounted to losses of 9,911 thousand Euros in 2023 against losses of 14,799 thousand euros in 2022. The positive effect mainly concerns real estate valuation adjustment income, while the negative one concerns expenses of previous years (one offs) and revisions of previous years of the Catholic Service. In addition, the increase in interest rates led to a further burden. The results after taxes from continuing activities of the Group amounted to losses of 10,173 thousand euros compared to losses of 26,794 thousand euros in 2022. The results after taxes from continuing activities of the company amounted to losses of 12,788 thousand euros compared to losses of 23,764 thousand euros in 2022. Positive impact on income tax resulting from lower deferred tax expense compared to 2022.
The Group’s total Equity was negative (at 132,092 thousand euros), a fact which is mainly due to the high one-off cost of implementing the program of the Voluntary Exit of the staff, in 2021, amounting to 112,233 thousand euros. However, the new transformation plan is expected to contribute decisively to ELTA’s return to positive Equity and to strengthening their sustainability.
On the occasion of the publication of the financial results for the year 2023, the Managing Director of ELTA, Grigoris Sklikas, states: “From 2023, ELTA is implementing an integrated strategic recovery plan, with the main axes being cost reduction, updating structures, improving the product mix and services, their emergence as a key protagonist of e-commerce in SE Europe through partnerships and commercial extroversion. We believe it is a business that can recover and emerge as a key player in the middle economy, offering a new wider network with more and more digital solutions for individuals and businesses.”
SOURCE: ot.gr
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