Finnish Post office reports mixed Q3 data

Posti Group sales Q2

For the first nine months of 2016, Posti Group reported that net sales had fallen by 5.6% year-on-year, or by 3.9% on a like-for-like basis. Its adjusted operating profit stood at 21.5m, implying a margin of 1.9% of sales.

As measured in waybills, Posti’s domestic freight increased by 6% year-on-year. Parcel volumes were up 1%, but the number of addressed letters was down by 8%. For the third quarter of 2016, the operational figures were similar. Domestic freight volume was up by 8%, parcel volume increased by 2%, while letter volume declined by 9%.

A highlight of the quarter was the acquisition of Veine, a Finnish provider of temperature controlled logistics, which Posti claimed would support their strategy to grow in food logistics. The post office has since acquired another food logistics provider in October, Kuljetus Kovaleinen.

Heikki Malinen, President and CEO of Posti Group, stated, “Due to the acquisition of Veine and growth in freight, Parcel and Logistics Services’ net sales increased by almost 8%. However, business group’s adjusted operating result declined, but was still positive. Heavy transport volumes have turned to growth since April 2016 after declining for 47 consecutive months. This is a very positive development and gives confidence to the whole logistics market.

“In July-September, the number of parcels delivered by Posti continued to grow. The growth was particularly strong in the Baltic countries, a total of 27%. We have strengthened our position in the international e-commerce by establishing of more than 1,200 pick-up points in the Baltic countries and by joining the DHL European partner network. This network offers customers access to pick-up points in 16 European countries. In Finland, the growth in parcel delivery is fastest through parcel points. The digital subscription channels are gaining popularity, as well. The number of parcels paid online has increased five-fold during the third quarter.”

Source: Posti Group