*The items include the management reclassification of the costs of the energy business.
The Group’s performance in 2023 is solid and up on 2022 with a record EBIT value (€2,620 million, +9.4% y/y) in the Group’s history.
These results confirm the effectiveness of the strategic guidelines defined by management and their execution, as well as the resilience demonstrated by the Group, which benefits from a diversified business structure and has continued to operate and grow in an uncertain economic scenario.
GROUP NET DEBT/(FUNDS) (€m)
Title: Group Net Financial Position
The data is expressed in millions of euros
Net financial position increased by €2,848 million from December 2022 to December 2023
Net financial position December 2022: 1,012
Mail, parcels, and distribution: +84
Financial services: +1,856
Insurance services: +978
Payments and mobile: -68
Elisions: -1
Net financial position December 2023: 3,861
Net financial position December 2022: 1,012
Operating cash flow: +2,648
Change in net working capital: +227
Investments: -845
Dividends: -883
Investments in equity: -145
Valuation effects: +2,145
IFRS 16 and other changes: -299
Net financial position December 2023: 3,861
Total net debt/(funds) at 31 December 2023 showed funds of €3,861 million, an improvement of €2,848 million from 31 December 2022 (funds of €1,012 million).
Consolidated financial statements
| Assets (€m) | 31 December 2023 | of which related parties | 31 December 2022 | of which related parties |
|---|---|---|---|---|
| Non-current assets |
|
|
|
|
| Property, plant and equipment | 2,546 | - | 2,404 | - |
| Investment property | 28 | - | 31 | - |
| Intangible assets | 2,062 | - | 1,817 | - |
| Right-of-use assets | 1,265 | - | 1,334 | - |
| Investments accounted for using the equity method | 294 | 294 | 267 | 267 |
| Financial assets | 205,656 | 3,067 | 191,850 | 3,578 |
| Trade receivables | 3 | - | 3 | - |
| Deferred tax assets | 2,109 | - | 2,601 | - |
| Other receivables and assets | 4,084 | 2 | 4,119 | 2 |
| Tax credits Law no. 77/2020 | 6,534 | - | 7,458 | - |
| Assets for outward reinsurance | 233 | - | 44 | - |
| Total | 224,814 |
| 211,928 |
|
| Current assets |
|
|
|
|
| Inventories | 172 | - | 157 | - |
| Trade receivables | 2,404 | 681 | 2,179 | 435 |
| Current tax assets | 167 | - | 140 | - |
| Other receivables and assets | 1,051 | 15 | 986 | 10 |
| Tax credits Law no. 77/2020 | 1,784 |
| 1,563 |
|
| Financial assets | 31,503 | 9,000 | 34,290 | 11,986 |
| Cash and deposits attributable to BancoPosta | 4,671 | - | 5,848 | - |
| Cash and cash equivalents | 4,211 | 874 | 4,983 | 1,991 |
| Total | 45,963 |
| 50,146 |
|
| Non-current assets and disposal groups held for sale | 50 | - | - | - |
| TOTAL ASSETS | 270,827 |
| 262,074 |
|
| LIABILITIES AND EQUITY (€m) | 31 December 2023 | of which related parties | 31 December 2022 | of which related parties |
|---|---|---|---|---|
| Equity |
|
|
|
|
| Share capital | 1,306 | - | 1,306 | - |
| Reserves | 1,083 | - | (509) | - |
| Treasury shares | - | (63) | - |
|
| Retained earnings | - | 7,100 | - |
|
| Total equity attributable to owners of the Parent | 10,322 |
| 7,834 |
|
| Equity attributable to non-controlling interests | - | 44 | - |
|
| Total | 10,439 |
| 7,878 |
|
| Non-current liabilities |
|
|
|
|
| Liabilities under insurance contracts | 155,338 | - | 141,380 | - |
| Provisions for risks and charges | 782 | 50 | 804 | 55 |
| Employee termination benefits | 637 | - | 705 | - |
| Financial liabilities | 10,243 | 209 | 10,939 | 201 |
| Deferred tax liabilities | 900 | - | 815 | - |
| Other liabilities | 2,058 | - | 2,004 | - |
| Total | 169,958 |
| 156,647 |
|
| Current liabilities |
|
|
|
|
| Provisions for risks and charges | 554 | 10 | 551 | 12 |
| Trade payables | 2,252 | 113 | 2,234 | 72 |
| Current tax liabilities | 189 | - | 60 | - |
| Other liabilities | 2,285 | 90 | 1,998 | 69 |
| Financial liabilities | 85,150 | 5,525 | 92,706 | 4,377 |
| Total | 90,430 |
| 97,549 |
|
| TOTAL LIABILITIES AND EQUITY | 270,827 |
| 262,074 |
|
| (€m) | FY 2023 | of which related parties | FY 2022 | of which related parties |
|---|---|---|---|---|
| Revenue from Mail, Parcels and other | 3,746 | 1,007 | 3,651 | 893 |
| Net revenue from Financial Services | 5,229 | 2,305 | 4,938 | 2,048 |
| Revenue from Financial Services | 5,795 | 2,317 | 5,125 | 2,052 |
| Expenses from financial activities | (566) | (12) | (187) | (4) |
| Net revenue from insurance services | 1,567 | 18 | 1,650 | 16 |
| Revenue from insurance contracts issued | 2,550 | - | 2,456 | - |
| Costs arising from insurance contracts issued | (1,058) |
| (805) |
|
| Revenue/(costs) from outward reinsurance | (15) |
| (8) |
|
| Income and (expenses) from financial operations and other income/expenses | 6,458 | 18 | (1,532) | 16 |
| Net financial (costs)/revenue relating to insurance contracts issued | (6,373) | - | 1,539 | - |
| Net financial revenue/(costs) related to outward reinsurance | 5 | - | (0) | - |
| Revenue from Payments and Mobile | 1,586 | 54 | 1,147 | 51 |
| Net operating revenue | 12,128 |
| 11,386 |
|
| Cost of goods and services | 3,237 | 308 | 2,827 | 167 |
| Personnel expenses | 5,170 | 74 | 4,823 | 71 |
| Depreciation, amortisation and impairments | 811 | - | 769 | - |
| Capitalised costs and expenses | (56) | - | (41) | - |
| Other operating costs | 275 | 3 | 508 | 5 |
| of which non-recurring costs | - |
| 320 |
|
| Impairment losses/(reversals of impairment losses) on debt instruments, receivables and other assets | 71 | (0) | 104 | 1 |
| Operating profit/(loss) | 2,620 |
| 2,396 |
|
| Finance costs | 119 | 1 | 126 | 2 |
| Finance income | 181 | 15 | 169 | 1 |
| Impairment losses/(reversals of impairment losses) on financial assets | (25) | - | (0) | - |
| Profit/(Loss) on investments accounted for using the equity method | 20 | - | (6) | - |
| Profit/(Loss) before tax | 2,727 |
| 2,433 |
|
| Income tax expense | 794 | - | 850 | - |
| PROFIT FOR THE YEAR | 1,933 |
| 1,583 |
|
| of which attributable to owners of the Parent | 1,922 |
| 1,578 |
|
| of which attributable to non-controlling interests | 11 |
| 5 |
|
| Earnings per share | 1.483 |
| 1.214 |
|
| Diluted earnings per share | 1.483 |
| 1.214 |
|
| (€m) | FY 2023 | FY 2022 |
|---|---|---|
| Profit/(Loss) for the year | 1,933 | 1,583 |
| Items to be reclassified in the Statement of profit or (loss) for the year |
|
|
| FVOCI debt instruments |
|
|
Increase/(decrease) in fair value during the year | 7,694 | (27,742) |
Transfers to profit or loss from realisation | 223 | (286) |
Increase/(decrease) for expected losses | 5 | 4 |
| Cash flow hedges |
|
|
Increase/(decrease) in fair value during the year | 80 | 279 |
Transfers to profit or loss | (318) | (409) |
| Financial revenue or costs relating to insurance contracts issued | (5,532) | 22,784 |
| Financial revenue or costs related to outward reinsurance | 2 | (1) |
| Taxation of items recognised directly in, or transferred from, equity to be reclassified in the Statement of profit or (loss) for the year | (565) | 1,542 |
| Share of after-tax comprehensive income/(loss) of investees accounted for using equity method | 0 | 1 |
| Change in translation reserve | (0) | (1) |
| After-tax increase/(decrease) in reserves related to group of assets and liabilities held for sale(net of tax effect) | - | - |
| Items not to be reclassified in the Statement of profit or (loss) for the year |
|
|
| Equity instruments measured at FVOCI - increase/(decrease) in fair value during the period | (5) | (315) |
| Actuarial gains/(losses) on employee termination benefits | (8) | 127 |
| Financial revenue or costs relating to insurance contracts issued | - | - |
| Taxation of items recognised directly in, or transferred from, equity not to be reclassified in the Statement of profit or loss for the year | 2 | (31) |
| Share of after-tax comprehensive income/(loss) of investees accounted for using equity method | (0) | 0 |
| Actuarial gains/(losses) on employee termination benefits related to disposal groups and liabilities held for sale (net of tax effect) | - | - |
| Total other comprehensive income | 1,578 | (4,048) |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 3,511 | (2,465) |
| of which attributable to owners of the Parent | 3,500 | (2,471) |
| of which attributable to non-controlling interests | 11 | 6 |
.
Equity | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Share capital | Treasury shares | Riserve | Retained earnings | Total equity attributable to owners of the Parent | Capital and reserves attributable to non-controlling interests | Total equity | |||||||||
| (€m) | Legal reserve | BancoPosta RFC reserve | Equity instruments - perpetual hybrid bonds | Fair value reserve | Cash flow hedge reserve | Reserve for insurance contracts issued and outward reinsurance | Translation reserve | Reserve for investments accounted for using equity method | Incentive plans reserve | ||||||
| Balance at 1 January 2022 | 1,306 | (40) | 299 | 1,210 | 800 | 1,307 | (33) | - | 1 | 3 | 13 | 7,236 | 12,102 | 8 | 12,110 |
| Adjustment for first-time adoption of IFRS 17 | - | - | - | - | - | 7,945 | - | (7,868) | - | - | - | (974) | (897) | - | (897) |
| Adjusted balance at 1 January 2022 | 1,306 | (40) | 299 | 1,210 | 800 | 9,251 | (33) | (7,868) | 1 | 3 | 13 | 6,262 | 11,205 | 8 | 11,213 |
| Total comprehensive income for the year | - | - | - | - | - | (19,789) | (93) | 15,744 | (1) | 1 | - | 1,668 | (2,471) | 6 | (2,465) |
| Dividends paid | - | - | - | - | - | - | - | - | - | - | - | (526) | (526) | (3) | (529) |
| Interim dividend | - | - | - | - | - | - | - | - | - | - | - | (273) | (273) | - | (273) |
| Purchase of treasury shares | - | (25) | - | - | - | - | - | - | - | - | - | (0) | (25) | - | (25) |
| Transactions with minority shareholders | - | - | - | - | - | - | - | - | - | - | - | (69) | (69) | - | (69) |
| Incentive plans | - | 2 | - | - | - | - | - | - | - | - | 6 | 0 | 8 | - | 8 |
| Coupons paid to holders of perpetual hybrid bonds | - | - | - | - | - | - | - | - | - | - | - | (16) | (16) | - | (16) |
| Other changes | - | - | - | - | - | (54) | - | - | - | 2 | - | 54 | 2 | - | 2 |
| Change in scope of consolidation | - | - | - | - | - | - | - | - | - | - | - | (1) | (1) | 33 | 33 |
| Balance at 31 December 2022 | 1,306 | (63) | 299 | 1,210 | 800 | (10,592) | (128) | 7,876 | (0) | 5 | 19 | 7,100 | 7,834 | 44 | 7,878 |
| Total comprehensive income for the year | - | - | - | - | - | 5,529 | (169) | (3,774) | 0 | 0 | - | 1,914* | 3,500 | 11 | 3,511 |
| Dividends paid | - | - | - | - | - | - | - | - | - | - | - | (570) | (570) | (6) | (576) |
| Interim dividend | - | - | - | - | - | - | - | - | - | - | - | (307) | (307) | - | (307) |
| Purchase of treasury shares | - | (34) | - | - | - | - | - | - | - | - | - | (0) | (34) | - | (34) |
| Transactions with minority shareholders | - | - | - | - | - | - | - | - | - | - | - | (101) | (101) | - | (101) |
| Incentive plans | - | 3 | - | - | - | - | - | - | - | - | 8 | (0) | 10 | - | 10 |
| Coupons paid to holders of perpetual hybrid bonds | - | - | - | - | - | - | - | - | - | - | (16) | (16) | - | (16) | |
| Other changes | - | - | - | - | - | - | - | - | (1) | - | - | (1) | - | (1) | |
| Change in scope of consolidation | - | - | - | - | - | - | - | - | - | - | - | 6 | 6 | 68 | 74 |
| Balance at 31 December 2023 | 1,306 | (94) | 299 | 1,210 | 800 | (5,063) | (297) | 4,102 | (0) | 4 | 27 | 8,027 | 10,322 | 117 | 10,439 |
* This item includes profit for the year (Group portion) of €1,922 million and actuarial gains on provisions for employee termination benefits of €6 million, after the related current
and deferred taxation.
| (€m) | FY 2023 | FY 2022 |
|---|---|---|
| Cash and cash equivalents at beginning of year | 4,983 | 7,958 |
| Profit/(Loss) before tax | 2,727 | 2,433 |
| Depreciation, amortisation and impairments | 882 | 830 |
| Net provisions for risks and charges | 348 | 439 |
| Use of provisions for risks and charges | (371) | (354) |
| Provisions for employee termination benefits | 3 | 2 |
| Employee termination benefits | (106) | (118) |
| (Gains)/Losses on disposals | (112) | (1) |
| Impairment losses/(reversals of impairment losses) on financial assets | (25) | (1) |
| (Dividends) | (4) | - |
| Dividends received | 4 | - |
| (Finance income realised) | - | (1) |
| (Finance income in form of interest) | (169) | (158) |
| Interest received | 168 | 146 |
| Interest expense and other finance costs | 110 | 118 |
| Interest paid | (45) | (78) |
| Losses and impairment losses/(reversals of impairment losses) on receivables | 64 | 97 |
| Income tax paid | (191) | (509) |
| Other changes | (11) | 6 |
| Cash flow generated by operating activities before movements in working capital [a] | 3,272 | 2,851 |
| Movements in working capital: | ||
| (Increase)/decrease in Inventories | (15) | 2 |
| (Increase)/decrease in Trade receivables | (696) | 261 |
| (Increase)/decrease in Other receivables and assets | 399 | 253 |
| Change in tax credits Law no. 77/2020 | (352) | 11 |
| Increase/(decrease) in Trade payables | 25 | 91 |
| Increase/(decrease) in Other liabilities | 279 | 230 |
| Cash flow generated by/(used in) movements in working capital [b] | (360) | 848 |
| Increase/(Decrease) in liabilities attributable to financial activities, payments, cards and acquiring and insurance | (9,441) | 5,077 |
| Net cash generated by/(used for) financial assets and tax credits Law no. 77/2020 attributable to financial activities, payments, cards and acquiring and insurance | 2,852 | (17,954) |
| (Increase)/decrease in cash and deposits attributable to BancoPosta | 1,177 | 1,810 |
| Increase/(Decrease) in net liabilities under insurance contracts | 8,033 | 3,913 |
| (Income)/Expense and other non-cash components | (4,119) | 3,635 |
| Cash generated by/(used for) financial assets/liabilities attributable to financial activities, payments, cards and acquiring and insurance [c] | (1,498) | (3,519) |
| Net cash flow from/(for) operating activities [d]=[a+b+c] | 1,414 | 180 |
| - of which related party transactions | 4,420 | 1,981 |
| Investing activities: | ||
| Property, plant and equipment | (373) | (341) |
| Investment property | - | - |
| Intangible assets | (473) | (469) |
| Investments | (50) | (3) |
| Other financial assets | (17) | (132) |
| Investments in consolidated companies net of cash acquired | (95) | (678) |
| Disposals: | ||
| Property, plant and equipment, investment property, intangible assets and assets held for sale | 13 | 5 |
| Investments | - | - |
| Other financial assets | 1 | 12 |
| Net cash flow from/(for) investing activities [e] | (994) | (1,606) |
| - of which related party transactions | 14 | (18) |
| Proceeds from/(Repayments of) long-term borrowings | 126 | 110 |
| (Increase)/decrease in loans and receivables | - | - |
| Increase/(decrease) in short-term borrowings | (380) | (812) |
| (Purchase)/sale of treasury shares | (34) | (25) |
| Dividends paid | (883) | (801) |
| Equity instruments - perpetual hybrid bonds | (21) | (21) |
| Net cash flow from/(for) financing activities and shareholder transactions [f] | (1,192) | (1,549) |
| - of which related party transactions | (564) | (512) |
| Effect of exchange rate differences on cash and cash equivalents [g] | - | - |
| Net increase/(decrease) in cash [h]=[d+e+f+g] | (772) | (2,975) |
| Cash and cash equivalents at end of year | 4,211 | 4,983 |
| Restricted cash and cash equivalents at end of year | (2,576) | (3,755) |
| Unrestricted cash and cash equivalents at end of year | 1,635 | 1,228 |