PostNord reports a 3.6% decrease in net sales for 2017


PostNord recorded net sales of SEK37.08bn for 2017, a decrease of 3.6% compared to 2016. The Group’s operating profit totalled SEK –124m (2016: SEK-1,083m). The Group’s adjusted operating income was SEK338m (2016: SEK500m) for the full year. Growth in eCommerce & Logistics and ongoing cost adjustments failed to fully compensate for the considerably lower sales of products impacted by digitization.

As a result of continued digitization, mail volumes declined by 9% overall; 18% in Denmark and 7% in Sweden.

154m parcels were delivered by PostNord during the year, an increase of 9% from 2016. Growth in e-commerce continues, with e-commerce related B2C volumes rising 14%. Over the full year, sales of the Group’s other logistics services (third-party logistics, groupage cargo and pallet) increased by 5%.

Net sales of PostNord Sweden totalled SEK22,671m for the year (2015: SEK23,025m). Operating income totalled SEK515m (2016: SEK824m). Adjusted operating income totalled SEK515m (2016: SEK847m). The lower income resulted mostly from declining mail revenues that could not be fully offset via cost adjustments and extra resources for assuring quality. Post Nord Sweden reported a 7% decline in mail volumes. Like-for-like sales for eCommerce & Logistics increased by 6% mainly through continued growth in e-commerce and in other logistics operations.

PostNord Denmark reported a 9% fall in sales to SEK8,720m (2016: SEK9,571m). The result for 2016 was affected by impairment losses of SEK1,186m, on goodwill and property, plant and equipment related to the mail business. Operating income totalled SEK –1,115m (–1,910m). Income was affected by lower mail revenues could not be offset via sufficient adjustment of the costs arising in the mail business. In Communication Services, like-for-like sales decreased by 22%, with mail volumes falling 18%. Like-for-like net sales for eCommerce & Logistics rose 6% mainly through growth in heavy logistics.

Net sales of PostNord Norway were on a par with the preceding year (SEK3,875m compared to SEK3,789m in 2016) and operating income totalled SEK24m (2016: SEK–36m).

Excluding acquisitions and exchange rate effects, net sales increased by 3% in PostNord Finland as a result of growth in B2B and B2C. Operating income totalled SEK8m (2016: SEK–15m). The improvement was attributable to increased volumes, cost adjustments and lower leasing costs, but also reflected the fact that 2016 was charged with integration costs arising from the acquisition of the company Uudenmaan Pikakuljetus Oy (UPK).

Source: PostNord