Q3 profits plummet at PostNord

PostNord has announced a 2% drop in net sales for the third quarter of the financial year, and a large drop in operating income.

Net sales for the quarter were SEK 9.456 billion (£749.25 million), while operating income (EBIT) plummeted from SEK 323m (£25.59m) last year to SEK 65m (£5.15 million) this year’s financial quarter.

Explaining the situation, Annemarie Gardshol, CEO of PostNord said, “Over the year, the rate of decrease in parcel volumes in relation to the comparative quarter last year slowed. During the quarter, parcel volumes decreased by -4 percent (6) while mail volumes fell -11 percent (-9). The decrease in income for the Group is attributable in the main to our Danish operation and our Direct Link business. In addition, our income was adversely affected by higher costs arising from the challenging macro situation. 

“The adaptations of the business that PostNord embarked on in early 2022 are continuing and have gradually been intensified. We are taking decisive action here and now, with further price adjustments for our products and services, as well as fuel surcharges for transportation. We are also adjusting our capacity and our offering. We are clarifying our direct mail portfolio through a greater focus on addressed direct mail and more digital and target-group oriented services. At the same time, we are discontinuing the unaddressed direct mail service.”