Dutch Postal Crisis Deepens as Kretinsky Owned PostNL Seeks Government Aid

The Dutch postal operator PostNL, backed by Czech billionaire Daniel Kretinsky, has declared its business model “no longer sustainable” amidst declining performance and rejected pleas for state financial support.

The company, grappling with dwindling mail volumes and rising parcel costs, recently had its €68 million support request denied by the Dutch Ministry of Economic Affairs. This setback comes as PostNL battles against deteriorating market conditions and intensifying competition in the postal sector.

Kretinsky’s EP Group, which owns approximately 30% of PostNL, is simultaneously advancing towards completing its £3.6 billion acquisition of International Distribution Services (IDS), Royal Mail’s parent company, by March’s end. The deal, valued at 370p per share, has sparked industry speculation about potential synergies between PostNL and Royal Mail’s European parcel division, GLS.

The postal organisation forecasts an 8-10% volume decline in its Dutch mail operations this year, prompting a cost-reduction programme targeting savings between €40 million and €45 million. The parcels division presents a more optimistic outlook, with projected growth of 1-3%.

Outgoing Chief Executive Herna Verhagen emphasised the gravity of the situation, stating that financial results clearly demonstrate the current business model’s unsustainability. Leadership changes are imminent, with Chief Financial Officer Pim Berendsen set to assume the CEO position following Verhagen’s departure in April.

The crisis at PostNL mirrors broader challenges facing European postal services, as traditional operators confront increased competition from parcel delivery firms and automated locker services, while managing high fixed costs amid declining letter volumes.