Swiss Post’s profit considerably impacted by COVID-19

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Swiss Post’s results for the first half of 2020 were significantly lower than the same period last year. Swiss Post generated group profit of CHF*30m in the first six months, CHF163m down on the previous year’s figure. Operating profit (EBIT) stood at CHF61m in the first half of the year, CHF208m lower than the same period in 2019.

The decline in the interim results is primarily due to the fall in volumes in letter business and over-the-counter transactions. On the other hand, the pandemic has had a positive impact on online business, resulting in a significant rise in volumes year-on-year. However, the increase in parcels could not financially offset the negative effects on the group result.

The Coronavirus pandemic has accelerated key trends in Swiss Post’s core markets. This is clearly illustrated by volumes in the parcel market, which rose by around 22% in the first six months year-on-year. From January to the end of June, Swiss Post processed just under 87m parcels, whereas the figure stood at 71m for the same period last year. 17m parcels were processed in April 2020 alone – the highest figure for a single month in Swiss Post’s 170-year history.

PostLogistics posted an operating profit of CHF108m for the first half of the year, which is CHF40m higher than the previous year’s figure. This increase was mainly attributable to the rise in parcel volumes, but also the insurance benefits received and the release of provisions in relation to the attack on a van transporting cash in 2019. However, this upturn on the logistics market did not offset the negative effects on the other markets.

The Coronavirus outbreak has also accelerated the trend of digitization – resulting in declines in the letter business (–7.8% in addressed letters). In particular, there was a sharp fall in promotional mailing volumes. This led to a decline in revenue of CHF72m in addressed letters and unaddressed items. PostMail recorded an operating profit of CHF110m for the first half of 2020, down CHF84m year-on-year.

Source: Swiss Post

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