Improved earnings amid continuing transition in Denmark

Improved earnings amid continuing transition in Denmark

Net sales amounted to SEK 8,930 million (8,473), an increase of 4 percent in fixed currency for like-for-like units. Parcel volumes increased by 6 percent (18), while mail volumes decreased by –16 percent (–12).

Operating income totaled SEK 237 million (106). Adjusted operating income totaled SEK 330 million (166). The earnings increase was driven by a strong quarter in Sweden, where the parcel business continued to perform well and the mail business benefited from the general election in Sweden. At the same time, earnings were impacted by the transition in Denmark. Most of our other segments improved their performance in the quarter.

Ensuring long term competitive Danish parcel business

In Denmark, earnings continue to be impacted by the ongoing transition following the discontinuation of the national mail service, which has resulted in lost synergies between the parcel business and the former mail operations. We are now rapidly transforming the operational model into a focused, competitive parcel business, with an emphasis on developing offerings and infrastructure, as well as adapting capacity and the cost base. The transition is extensive and the direction is clear.

Continuing to adapt the Swedish mail business

While the parcel business grows, the structural decline in mail volumes in Sweden continues. To offer an accessible and financially self-sustaining postal service throughout the country, the Swedish mail operations need to be continually adapted to today’s volumes and to how the postal service is actually used.

The amended postal regulations provide us with a better basis to carry out this adaptation. During the quarter, we continued preparations for a future transition to two fixed delivery days. As part of the work, pilot projects are being conducted to provide quality assurance of the new model, test working methods, and gather vital experience before a wider roll-out.

External recognition of PostNord’s climate-related efforts

PostNord’s climate work is an important part of our customer offering and underpins our long-term competitiveness. It is therefore pleasing that Amazon, one of the world’s largest e-commerce businesses and an important customer, has recognized our efforts with two awards: Lowest Carbon Intensity and Excellence in Carbon Reporting.

Transformation that strengthens competitiveness

PostNord is continuing its transformation to strengthen competitiveness. We are adapting the mail business to structurally lower volumes, reshaping our operations in Denmark to a pure parcel business, and developing the parcel and logistics business in a market characterized by fierce competition, pricing pressure and constantly evolving customer needs. The third quarter has shown that our transformation is continuing to deliver results and that we are moving in the right direction.

Contact person: Evin Khaffaf, Head of Group Brand & Communication +46 10 436 00 00