Swiss Post – continued decline in profits

Operating profit at Swiss Post fell 11% year on year to 2019 to CHF 450 million. 

The company has released its annual results saying: “These results are unsurprising as Swiss Post continues to operate in a challenging environment.”

“Swiss Post aims to remain a robust, competitive and non-subsidised enterprise to continue financing the universal service from its own resources,” said Alex Glanzmann, Swiss Post CFO. “When I look at the development of the financial results and also see how Swiss Post’s key figures are changing, then it’s obvious that action is needed,” he added.

In the core markets, mail volume decline, competition for parcels and a low interest rate environment are seen as major challenges. This is not the first fall in profits for the postal operator in recent years and a transformation programme is planned.

Income continues to decline at PostFinance owing to the ongoing low interest environment. Interest income fell sharply again compared to the previous year, dropping by 164 million francs. Operating income was down 44 million francs to 1,660 million. “This clearly shows that we cannot compensate for the competitive disadvantage of not being able to issue loans and mortgages ourselves in the current negative interest environment,” said Hansruedi Köng, CEO of PostFinance.

Operating profit rose by 20 million francs last year, climbing to 240 million francs. However, this effect is not sustainable as interest income will continue to fall over the coming years. Swiss Post wants to remain a robust, non-subsidised company. “We want to continue providing a valuable public service in future and are proud of the fact that we are self-financing,” says Roberto Cirillo, CEO of Swiss Post. “A valuable public service for citizens and companies is the actual dividend from Swiss Post’s business activities,” he underlined.