PostNord – parcel volumes up 15%

Parcel volumes at PostNord grew by 15% in the second quarter of 2020, with a total volume of 49 million parcels handled during the period that included the global lockdown.

That said, at SEK 9,328 million, sales for the quarter were in line with the same period in 2019. Letter volumes fell sharply.

Comment from Annemarie Gardshol, President and Group CEO said, “Nothing was really the same in the second quarter of the year, neither for society at large nor for us at PostNord. The ongoing coronavirus pandemic affected our customers, our partners, our suppliers and ourselves in a very real way. Although the uncertainty remains high, we as a company handled the difficult situation well in the second quarter. We have shown an ability to handle major changes in volume at a high level of delivery quality, while continuously focusing on our improvement programs.

“Operating income improved sharply to SEK 517m (-70). The improvement programs progressed successfully. At the same time, price increases had a positive effect on income. Additional costs arising from the pandemic were offset by corresponding government compensation.

“Preparations are ongoing for transition to two-day distribution of letters in Sweden. In Sweden and Denmark, dialogue with politicians concerning a long-term financially sustainable letter business continues. The current agreement between PostNord Danmark and the Danish government was extended for another six months, until the turn of the year. PostNord Danmark receives compensation for the extra costs involved in the universal service obligation. However, it is assessed that the compensation does not offset the costs we incur in Denmark.”

The PostNord CEO concluded, “I am proud of our employees and how well they handled a turbulent second quarter. Despite increased sick leave and a sharp change in demand, we have delivered on our mission with commitment, high delivery quality and good efficiency. At the same time, the future is unusually uncertain, both in the short and long term, so it is with both humility and confidence that we approach the second half of the year.”