PostNord publishes its Q3 2022 results


Net sales for PostNord (Group) in the third quarter of 2022 totaled SEK 9,456m, a decrease of 2% compared to the same period in 2021. The decline was primarily due to a reduction in the company’s Direct Link business, lower business-to-consumer parcel volumes, and lower mail volumes. However, there were some offsets to this decline, such as rising fuel surcharges, general price increases, and growth in third-party logistics and groupage cargo.

Parcel volumes also decreased, with a total of 56m parcels handled during the quarter, a decrease of 4%. Business-to-consumer volumes decreased by 5%, while business-to-business volumes remained unchanged at 0%. Mail volumes decreased by 11% due to the ongoing process of digitalization.

Other operating income totaled SEK 221m and consisted mainly of exchange rate gains, State compensation for the universal service obligation in Denmark, and capital gains on the sale of properties.

Operating profit for the quarter totaled SEK 65m, with an operating margin of 0.7%. Adjusted operating income was recorded at SEK 108 million. The company’s decreased result is mainly attributed to its Danish operations and Direct Link business, as well as high transportation costs. Net financial items totaled SEK -16m, mainly consisting of interest expense in connection with leases, pensions, and loans.

PostNord Sweden

In the quarter, PostNord Sweden had net sales of SEK5,627m, a decrease of 2% from the previous year. The e-Commerce & Logistics business grew by 9%, but business-to-consumer volumes decreased. Total parcel volume decreased by 2% and digitalization in the mail business continues at the same pace as before the pandemic, with mail volumes decreasing by 12%. Operating income was SEK 232 million, with items affecting comparability totaling SEK -43 million. The company is continuing to adapt production capacity to lower mail and parcel volumes, with rising inflation leading to higher prices in the delivery chain.

PostNord Denmark

In the quarter, PostNord Denmark had net sales of SEK1,891m, a decrease of 1% from the previous year. Mail volumes decreased by 6% and parcel volumes decreased by 1%. Operating income was SEK -70m, mainly due to reduced volumes in business-to-consumer parcels and decreased volumes of import mail. Income was also adversely affected by rising inflation and higher costs in the business. Delivery quality of the “Brevet” service was 96.1% and delivery quality in parcels was 94.2%.

PostNord Norway

In the quarter, PostNord Norway had net sales of SEK 1,261m, an increase of 3% from the previous year. However, parcel volumes decreased by 16% due to subdued demand partly caused by rising inflation. Operating income was SEK -53m and was affected by high inflation, reduced e-commerce volumes and challenges in adapting production capacity. Delivery quality for parcels was recorded at 91.4% for the quarter.

PostNord Finland

In the quarter, PostNord Finland had net sales of SEK 380 million, an increase of 2% from the previous year. However, parcel volumes decreased by 2% due to lower volumes of business-to-consumer imports. Operating income was SEK -5 million, which declined due to the establishment of a new terminal in Tampere. Delivery quality for parcels was recorded at 88.7% for the quarter.

Source: PostNord