Swiss Post – sharp drop in 2020 profits

Swiss Post Group has seen a sharp drop in profits year on year thanks to the negative impact of the pandemic. Operating profit fell from CHF450m (£375 million) in 2019 to CHF294 million (£226 million).

Parcels performed strongly with a 23% growth in volumes but the strong growth in this segment didn’t offset a range of other factors. Addressed letter volumes fell by 5.6%, and with letter mail still the postal operator’s biggest segment this impacted profits significantly. Swiss Post’s PostFinance arm had losses due to negative interest rates. Across the organisation, protective measures and reduced staffing impacted business across the board. Post office branches also saw declines in transactions due to lockdown measures.

“The pandemic was a major challenge for all of our employees and for the entire Swiss Post management. For example, we processed an unprecedented volume of parcels under difficult conditions and delivered them reliably to all corners of Switzerland. Given the variety of major challenges we faced due to coronavirus, we can be satisfied with last year’s result on balance, despite the fact that it is poorer than in previous years,” said Roberto Cirillo, CEO of Swiss Post.

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