PostNord publishes Q4 2022 results, highlighting challenges ahead

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PostNord has released its year-end report for 2022 (and Q4), showcasing a challenging year filled with ongoing structural changes. The report highlighted the impact of external factors such as economic uncertainty and high inflation, which led to declining parcel and mail volumes and reduced consumer purchasing power.

Despite these challenges, the company’s CEO, Annemarie Gardshol, emphasised that the company continues to work towards adapting to the difficult external environment. This includes adjustments to the company’s capacity and terminal network, phasing out unprofitable offerings, and implementing price adjustments. In the Swedish business, a new, more cost-effective, and flatter organisational structure is being introduced.

In terms of financials, the net sales for 2022 totalled SEK10,947m, a decrease of 2% compared to the previous year. Parcel volumes decreased by 4%, while mail volumes decreased by 13%. Operating income for the full year was SEK357m, while adjusted operating income was recorded at SEK 666 million. The Board of Directors has proposed not to pay a dividend for the 2022 financial year. Parcel volumes decreased and in all 69m parcels were handled during the quarter, a decrease of 4%. Business-to-Consumer volumes decreased by 4%, while Business-to-Business volumes decreased by 5%.

In terms of investments, PostNord is taking a leading role in the climate transition in the logistics and transport sector. The company has set a goal of being fossil-free by 2030 and has already achieved 60% of its energy consumption from renewable sources. To further this effort, PostNord has signed a SEK1.2bn loan with the Nordic Investment Bank, which will be used to renew the company’s vehicle fleet, leading to a reduction of 20,000 tonnes of emissions per year.

Additionally, the company approved investments in renewable fuel vehicles, including 382 electric vehicles and 75 biogas-powered trucks in Sweden and Norway. The company is also expanding its parcel locker network and has more than 9,000 PostNord parcel lockers in operation across the Nordic region.

The year-end report also highlighted the signing of a new agreement for the provision of Denmark’s universal service obligation, which will run until December 31, 2023. In Sweden, the report from the Commission of Inquiry on the scope and financing of the future universal service obligation has been handed over to the government, and PostNord will consider the conclusions and develop its position in response.

Source: PostNord