CTT - Correios De Portugal, S.A. (CTTPY) Q1 2025 Earnings Call Transcript

2025-05-09 12:32:51 ET

CTT - Correios De Portugal, S.A. (CTTPY)

Q1 2025 Earnings Conference Call

May 9, 2025, 04:00 AM ET

Company Participants

Joao Bento - CEO

Joao Sousa - Member, Board of Directors

Guy Pacheco - CFO

Conference Call Participants

Joao Safara - Santander

Filipe Leite - CaixaBank BPI

Antonio Seladas - AS Independent Research

Joaquin Quiros - JB Capital

Pedro Lobo Antunes - Caixa

Presentation

Operator

Good morning, and welcome to CTT First Quarter 2025 Results Conference Call. Please note that this conference is being recorded. [Operator Instructions]

I will now turn the call over to Mr. Joao Bento, CEO.

Joao Bento

Thank you. Good morning, everyone. Welcome to our first quarter results conference call. If we start with -- if you bear with me in the first slide, which is Slide 4, we believe we had a very decent quarter where recurring EBIT growth was driven by recovery in Financial Services. Indeed, in terms of revenue, we've seen growth on all three blocks; Logistics, Bank & Financial Services of around 9.5%, while EBIT grew almost 20%, a very significant growth.

That was not even higher given the impact of the last year's general election. Otherwise, it would have been even more significant. If we move to analyzing each business line, starting in Slide 5, I'm sorry, with Express & Parcels. We've seen continued growth in volumes, revenue and recurring EBIT, while -- with softer-than-expected volumes, although growing a solid 15%, which we see clearly above market growth. And this volume growth of 15% converted into revenue with a strong improvement, given a combination of price, average rate per object and value-added services.

Indeed, we convert 15% of volume growth into 23% of revenue growth. EBIT margin on the right -- sorry, EBIT on the right grew 24.5% from €6.5 million to €7 million in the quarter, although the EBIT margin was affected by some operational issues, namely related with capacity increase, since we keep very focused on providing very high quality, which is vital in this business....

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