PostNord publishes its Q2 2022 results

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In the second quarter, PostNord had net sales of SEK10,037m, a decrease of 5% from the previous year. The loss was primarily due to a decrease in business at Direct Link, reduced business-to-consumer parcel volumes, and lower mail volumes. However, this was offset by rising fuel surcharges, general price increases, growth in third-party logistics and groupage cargo, and higher parcel volumes business-to-business.

Parcel volumes declined by 7%, with volumes to business-to-consumer customers decreasing by 10% and volumes to business-to-business customers increasing by 3%. Mail volumes decreased by 12% as a result of the ongoing process of digitalization. Operating income was SEK 214m, an operating margin of 2.1%. Income was negatively impacted by lower volumes in both the parcel and mail businesses, as well as high transportation costs. 

PostNord Sweden

In the quarter, PostNord Sweden had net sales of SEK 5,965m, a decrease of 5% from the previous year. The e-Commerce & Logistics business grew by 8%, but business-to-consumer volumes decreased. Parcel volumes decreased by 4% and digitalization in the mail business continues at the same pace as before the pandemic, with mail volumes decreasing by 14%. Operating income was SEK 318 million, with the lower income mainly due to a decrease in income resulting from the reduced mail volumes and the lower business-to-consumer income. The company is continuing to adapt production capacity to lower mail and parcel volumes, with rising inflation leading to higher prices in the supply chain which adversely affected margins during the quarter. Delivery quality for mail was recorded at 95.5% and delivery quality for parcels was 91.0%.

PostNord Denmark

In the quarter, PostNord Denmark had net sales of SEK 2,025m, a decrease of 5% from the previous year. Mail volumes were unchanged, with a further sharp fall in import mail due to the abolition of the minimum VAT threshold for purchases of goods outside the EU. However, domestic mail benefited from the mailing of ballot papers for a Danish referendum. Parcel volumes decreased by 6%, with demand in business-to-consumer falling in pace with the opening up of Danish society and reduced consumer purchasing power. Operating income was SEK -57m, mainly due to reduced volumes in business-to-consumer parcels, decreased volumes of import mail and higher costs in the business due to rising inflation. Compensation for the universal service obligation (USO) was also lower in the quarter. Delivery quality of the “Brevet” service in the quarter was 95.1% and delivery quality in parcels for the quarter was 91.9%.

PostNord Norway

PostNord Norway reported a decrease of 2 percent in net sales and a reduction of 14 percent in parcel volumes for the quarter due to the lifting of pandemic restrictions and rising inflation. Operating income was SEK -9m, which was attributed to higher transportation costs, reduced e-commerce volumes and challenges in adapting production capacity quickly enough to align with the reduction in volumes. Delivery quality was 91.1 percent.

PostNord Finland

PostNord Finland had net sales of SEK 391m, an increase of 2 percent in fixed currency, mainly due to increased deliveries to the healthcare sector. Parcel volumes decreased by –4 percent, resulting in an operating income of SEK 1m. Delivery quality for the quarter was 86.2 percent.

Source: PostNord