PostNord – parcel volume drop hits profits and revenues

Revenues, profit and parcel volumes dropped at PostNord in the financial year 2021-22. Net sales fell 5% to SEK 10,037 million (GBP 817.7 million), in part attributed to a drop in parcel volumes year over year by 7% due to a drop in B2C parcel volumes.

Operating profit (EBIT) also saw a sharp fall to SEK 214 million (GBP 17.434 million) from SEK 514m in the previous financial year.

Annemarie Gardshol, CEO of PostNord said, “The Group’s sales amounted to SEK 10,037 million (10,323), representing a decrease of -5 percent from the same period in the previous year. Operating income totaled SEK 214 million (518). The decrease in income is for the most part attributable to a continuing decline, of -7 percent (14), in parcel volumes in the quarter. In addition, the volume of mail has declined by -12 percent (-4). Income is also continuing to be negatively impacted by higher transport-related costs arising from inflation, increased fuel costs and capacity shortages as a result of the EU’s Mobility Package and the war in Ukraine. We succeeded in largely compensating for the increase in fuel prices via fuel surcharges.

“We are continuing to focus closely on adapting our capacity and are taking appropriate actions in response to prevailing conditions in the form of implementing the price adjustments necessary and ensuring the right levels of staffing. We have upped the pace of our improvement programs, which are starting to deliver results.

Business-to-consumer parcel volumes are expected to continue to perform weakly over the rest of the year. Concern about private finances among consumers and weaker purchasing power are creating uncertainty in the e-commerce market. This will be offset to a certain extent by anticipated stable developments in business-to-business volumes.”

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