According to a statement on Wednesday, Post CFO Alex Glanzmann spoke of a “challenging year for Swiss Post”. 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.
In addition, there is the turnaround in interest rates: the rising interest rates have not yet been able to compensate for the loss of income from the negative interest rate environment at Postfinance. Finally, inflation is also leaving its mark through higher costs for fuel, energy, transport, materials and wages.
4.5 percent fewer packages
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. Counter payments fell by 19.8 percent. Postbus carried more passengers, but even that could not compensate for the higher costs.
The operating result (EBIT) shrank by 129 million francs to 165 million francs by mid-2023. Sales rose by 80 million francs to 3.540 billion francs. However, Swiss Post also expects earnings for the year as a whole to be below the previous year.
Optimistic for 2024
Nevertheless, Swiss Post is optimistic about the near future: They are convinced that interest rate trends and the “Swiss Post of tomorrow” strategy will have a positive impact on earnings as early as next year.
In the last six months, progress has already been made in several areas: in growth and development with a new e-voting system, the new post app with 60,000 daily users and the takeover of the SpotMe communication platform.
In terms of sustainability, Swiss Post wants to reduce CO2 emissions by 90 percent by 2040. Already today, 50 percent of the vehicles are CO2-free, in Zurich and Bern letters and parcels are delivered exclusively with electric vehicles.
CEO wants to cut costs
With regard to the price measures, there was an agreement with the price monitor from 2024. In addition, Swiss Post must “reduce its costs over the long term and free up financial resources,” said CEO Roberto Cirillo to the media.
The consistent implementation of this strategy is necessary in order to respond to the needs of the population and to offer up-to-date services, Glanzmann is quoted in the statement. This is the only way she can “secure and finance the public service in the long term”. And Cirillo added: “We must not stand still, Swiss Post must continue to develop.” (sda/nil)
2023-08-23 18:21:59
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