In the first half of the year, Swiss Post’s profit more than halved compared to the previous year. It still amounted to 118 million francs. That is 141 million francs less than in the previous year. Both letter and parcel volumes declined.
The operating result (EBIT) also fell by 129 million francs to 165 million francs by mid-2023, as reported by Swiss Post. The main reason for the decline is the continued decline in mail, parcel and counter business.
The volume of letters fell by 6 percent compared to the same period of the previous year, and the volume of parcels by 4.5 percent. Swiss Post’s turnover, on the other hand, rose by 80 million francs to 3.54 billion francs.
Inflation is also leaving its mark, with higher costs for fuel, energy, transport, materials and wages. Accordingly, Swiss Post expects earnings for the year as a whole to be below the previous year.
Post boss speaks of a challenging year
Post CFO Alex Glanzmann spoke of a “challenging year for Swiss Post” in the statement. Digitization is leading to a decline in letter volumes and over-the-counter payments. And because of the “clouded consumer mood”, fewer packages and advertising mail were sent.
Caption: The Swiss Post logo on an electric delivery van (08/15/23) KEYSTONE/Christian Beutler
Nevertheless, Swiss Post is optimistic about the near future: Those responsible continue to write that they are convinced that interest rate developments and the “Swiss Post of tomorrow” strategy will have a positive impact on earnings as early as next year.
Postfinance suffers from turnaround in interest rates
Despite additional income, Postfinance’s operating profit also fell. Overall, the financial subsidiary of Swiss Post generated a good 13 percent higher operating income of 924 million francs in the first six months of the year, as can be seen from Swiss Post’s half-year figures.
In contrast to most commercial banks, the turnaround in interest rates did not do Postfinance any good: Interest income fell by 46 million francs to 253 million francs compared to the previous year, as can be seen from the annual report. The credit ban makes it impossible for Postfinance to generate a return that is customary in the industry.