PostNord: First quarter 2022 – income affected by sharp downturn in e-commerce
First quarter 2022
- Net sales totaled SEK 9,772 million (10,187), a decrease of -6 percent (12) in fixed currency for like-for-like units
- Overall, parcel volumes decreased by -10 (30) percent due to considerably lower business-to-consumer volumes
- Mail volumes decreased by -13 percent (-10)
- Operating income (EBIT) totaled SEK 98 million (878)
Comments from Annemarie Gardshol, CEO
Income impacted by sharp downturn in e-commerce market
The Group's sales in the first quarter amounted to SEK 9,772 million (10,187), representing a decrease of -6 percent from the previous year. Operating income for the quarter was SEK 98 million (878). The decrease in earnings is significant in relation to the first quarter of 2021, which was the Group’s strongest ever.
The decrease in income is mainly attributable to a sharp drop of -10 (30) percent in parcel volumes. The decrease in mail volumes, -13 percent (-10), also had a negative impact on income. Since the pandemic restrictions have been removed in the Nordic markets, we see challenges in adapting capacity quickly enough to realign with the significant volume reduction that has caused. We see changed patterns of consumption since the lifting of pandemic restrictions, with retailers enjoying a boost at the expense of e-commerce. In addition, many people have chosen to spend money on travel and entertainment.
The income was also negatively affected by periodically high sickness absence due to the COVID-19 pandemic. Although we were able to largely compensate for the increase in fuel prices, we were negatively affected by higher costs for purchased transport as a result of underlying increases in costs from suppliers.
To fully adapt production capacity according to current parcel volumes, we make significant efforts to ensure the right staffing. We are also adding further measures within our transformation programs to increase the efficiency of the business. In parallel, we are implementing additional measures to compensate for transport-related cost increases.
Sustainable investments for increased competitiveness
PostNord is undergoing a wide-ranging transformation towards a greener and more digital future. We are pursuing our strategy and continuing to invest to further strengthen our position in the long-term growing e-commerce market. We are continuing to strengthen our parcel business, with investments in our terminals and the continued roll-out of parcel lockers. We now have more than 7,000 parcel lockers in the Nordic region, complementing our home and service points deliveries.
We are continuing to transform the vehicle fleet to enable fossil-free operations by 2030. Also in the quarter, we decided to invest in 240 electric vans and a similar number of charging stations, as well as 28 biogas-powered trucks. Doing so, we contribute to the necessary climate transition and the Paris Agreement's goal of keeping global warming below 1.5° C. The relevance of our sustainability work and the difference it makes were confirmed when consumers in Sweden named PostNord as the most sustainable logistics brand in the European Sustainable Brand Index.
This report, presentation material and video are available on our Group website.
Contact: Malin Nordén. This information is of such a nature that PostNord AB (publ) is obliged to make it public pursuant to the EU Market Abuse Regulation. The information was submitted, through the agency of the contact person defined above, for publication at 13.00 CET on April 26, 2022.