Comments from Annemarie Gardshol, CEO
Net sales decreased but at the same time income improved in the quarter
Net sales totaled SEK 8,570 million (9,149), a decrease of –5 percent (–6) in fixed currency for like-for-like units. In all, mail volumes decreased by –18 percent (–16), largely on account of the ongoing process of digitalization and the new postal law in Denmark. The Group’s sales also decreased as a result of the closure of the major share of the activities within the logistics business in Denmark, and due to lower sales in the international segment. Parcel volumes increased by 1 percent (–2).
Operating income totaled SEK 86 million (–6) and adjusted operating income SEK 104 million (–6). Income improved through positive growth in the parcels business and lower depreciation costs in Denmark. Our price adjustments are compensating for the sharply lower mail volumes, while the impact of our improvement programs is continuing to show through. Overall, the result is that income has improved for the fourth consecutive quarter.
Great potential in the parcel business
We are continuously developing our e-commerce offering to meet the high expectations of customers and consumers. Our Market Leadership initiative is focused on ensuring that we are our customers’ first choice for the Nordic market. One of PostNord’s significant strengths is our extensive network of parcel distribution points, in the form of service points and parcel lockers. We are continuing to expand this network which, paired with our home delivery offering, forms a powerful Nordic offering. One important aspect of further development in our Nordic parcel business lies in positioning ourselves to gain a larger share of import volumes.
Our Cost Leadership program, which aims to raise the level of structural profitability, continues at high pace. Several programs are in progress within the Group to improve efficiency at our terminals and in our transport operations.
Reset of conditions needed for the mail business in Sweden
PostNord’s Swedish operations have undergone continuous streamlining and updating to ensure that the company’s services can meet the demand from customers right across the country. In view of the ongoing process of digitalization in Sweden, it is estimated that mail volumes will halve over the next five years. As a result, we are continuing to focus unrelentingly on streamlining and adapting our operations. In addition to the actions we are taking ourselves, we need regulatory relief if we are to be able to operate a nationwide, self-financed and profitable mail business.
In Denmark, we have been delivering shipments to small islands, the visually impaired and international mail on a compensated basis since the preceding year-end. On October 31, the agreement on mail distribution to the visually impaired ends.
High climate ambitions
It is natural for us to take the lead in the climate transition in the logistics and transportation sector. We have set high climate ambitions aimed at achieving fossil-free transportation and operations by 2030. At the end of the quarter, 72 percent of the energy used in PostNord’s own vehicle fleet was from renewable sources.
PostNord is on a wide-ranging transformation journey towards a greener and more digital future. We are building a new core business in parcel on top of our existing organization, mail.
Source: PostNord