CTT wants to reach €1.25 billion in revenues by 2025

  • ECO News
  • 23 June 2022

The postal company revealed its strategy for the next three years, having defined several goals. One of them is to find a strategic partner for Banco CTT.

CTT revealed this Thursday its strategy for the next three years, in a document that also takes stock of its financial activity. The goals until 2025 include, among others, reaching between €1.1 billion and €1.25 billion in revenues, accelerating the growth potential of Banco CTT through a strategic agreement, creating a real estate management vehicle and distributing between 35% and 50% of the company’s net profit in recurring dividends.

“Based on the outlined strategy, CTT will continue a transformation journey based on a profound reshaping of its business profile,” says the company in a statement sent to the Portuguese Securities Market Commission (CMVM). “We will continue to invest in growth-oriented projects and aim at achieving sustained and meaningful growth until 2025.”

Thus, among the main targets, CTT wants to achieve revenues within the range of €1.1 billion and €1.25 billion and a recurring EBIT within the range of €100 and €120 million. For accumulated CAPEX (capital expenditure), the goals are to reach between €160 and €180 million by 2025, “equivalent to €40 to €45 million per year, aimed at increasing the sorting capacity across Portugal and Spain, developing the lockers network in Portugal”.

Another of the objectives involves “accelerating the growth” of Banco CTT and, for that, the company wants to find a “strategic partnership”, having already received “several offers”. The plan is to “reserve the capital increase” to that partner, in exchange for a “minority stake”.

In real estate, as already announced, the postal company wants to create an investment vehicle, incorporating around 400 assets. CTT will have a majority stake in this new entity, which will allow the entry of new investors and will be managed by an external company.

For the next three years, CTT also intends to distribute dividends equivalent to 35% to 50% of the company’s net profit. “The dividend proposal is subject to market conditions, to a suitable financial and accounting context of CTT’s balance sheet that enables such execution, and to the applicable legal and regulatory terms and conditions,” the document reads.