PostNord: Q1 2023 Interim Report – actions taken produce results
First quarter 2023
- Net sales totaled SEK 9,899 million (9,772), a decrease of -1 percent (-6) in fixed currency for like-for-like units.
- Parcel volumes decreased in all by -2 percent (-10).
- Mail volumes decreased by -11 percent (-13).
- Operating income (EBIT) totaled SEK 43 million (98)
Comments from Annemarie Gardshol, CEO
The Group’s sales totaled SEK 9,899 million (9,772) in the quarter, a decrease of -1 percent (-6) in fixed currency for like-for-like units. Operating income totaled SEK 43 million (98). The Group’s income was negatively impacted by forward exchange contracts, in the amount of SEK -37 million (19). Mail volumes decreased by -11 percent (-13) while parcel volumes decreased by -2 percent (-10). The confidence of consumers regarding their own finances remains at historically low levels and transportation costs are persistently high. At the same time, it is clear that the sharp decline in volume in the wake of the pandemic has started to ease, and we have in part managed to offset increased costs through price increases.
Measures taken stabilize the result
Our improvement programs are proceeding according to plan. Compared to the first quarter last year, earnings for our Danish and Finnish operations have improved. It is pleasing to note that parcel volumes in our Swedish business remained unchanged while the Swedish e-commerce market declined. Despite challenging external factors and overall lower mail and parcel volumes, the Group's earnings have stabilized. Thanks to the price increases implemented, we have managed to sustain the level of sales.
We will continue on the path we have taken, while carrying on with our work to make our business model more flexible, to enable us to adapt our capacity more rapidly to changes in volume. At the end of the quarter, our financial preparedness totaled SEK 6,959 million (6,979), a high level of preparedness that offers security in challenging times.
On April 1, the Group Leadership Team introduced a new structure for extra support to operations in the Nordic region. To capitalize on the potential for growth in international import volumes, we are merging our operations outside the Nordics into PostNord International. At the same time, PostNord Accelerate was created to take over PostNord Strålfors and PostNord TPL. We identify significant value potential in PostNord Strålfors and major potential for growth in our third-party logistics business. The two businesses have similar business logic with strong B2B brands and therefore make a good fit under the same leadership.
Attractive offering and green initiatives with maximum precision
While maintaining a close focus on adapting the business to a challenging environment, the Group remains forward-looking. We are investing in technology, the customer offering and sustainability for a greener and more digital future. We are continuing to expand our parcel locker network, which along with our distribution points and home delivery service, offer a wide range of options for consumers. At the end of the quarter, we had approximately 13,000 parcel distribution points across large parts of the Nordic region.
We are taking the lead in the sector's climate transition and have an ambitious sustainability agenda based on the goal of being fossil-free by 2030. Road transportation accounts for the highest proportion of PostNord’s climate impact. On April 1, we increased the number of green corridors in southern Sweden and the major share of our transportation on these routes is fossil-free. The corridors are located on important sections of routes in both Sweden and Norway.
Transformation of our vehicle fleet continues apace. At the end of the quarter, 64 percent of the energy used in our own vehicle fleet was renewable, compared to 60 percent at the end of the fourth quarter 2022.
This report, presentation material and video are available on our Group website.
Contact person: Björn Bergman, Head of Group Brand & Communication.
This information is of such a nature that PostNord AB (publ) is obliged to make 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 25, 2023.