Free cash flow

PostNL Free cash flow in € million
2024

We prioritise capital allocation based on a sound financial framework, taking into account developments in our results, return on invested capital and cash conversion, to fund further growth and provide sustainable shareholder returns. Throughout the year we continued to invest in our business and digital transformation to strengthen our competitive position.

Free cash flow is defined as cash flow before dividend, acquisitions, redemptions of bonds and other financing activities, and after payment of leases. The repayment of leases and related cash flows, reported as cash used in financing activities following the adoption of IFRS 16, are as such included in our calculation of free cash flow.

Our free cash flow decreased by €40 million to €12 million in 2024 (2023: €52 million). This decline is mainly caused by the lower business performance and a less favourable working capital development, only partly compensated by lower capital expenditure in 2024 compared to 2023. The strong focus on capex as well as strict working capital management contributed to the cash flow performance.