PostNord reports operating loss despite e-commerce growth


PostNord has reported another operating loss in year-end results. Organic net sales fell 0.3% year-over-year after currency effects are stripped out. The company’s operating loss totalled SEK*855m, down from a loss of SEK 124m the previous year. The company’s net loss was SEK 1,067m, down from a loss of SEK 337m in the previous year.

Its Communication Services segment saw revenues fall 5.0% to SEK 16,797m. In eCommerce & Logistics, revenues grew 8.0 to SEK 20,873m. External parcel volumes grew 10.3% across the business.

Håkan Ericsson, President and CEO of PostNord, commented, “Another year has passed, and I can summarize 2018 by confirming that our strategy for the future is working well. But it is also clear that the strategy is largely dependent on the discussions on the universal postal service in both Sweden and Denmark leading to a system of regulation that will make economically sustainable results possible.”

“In 2019, we will expand capacity, partly by continuing to strongly expand the number of partner outlets across the whole of the Nordic region.”

“Mail volumes in Sweden are declining rapidly and dialogue will be needed in both Sweden and Denmark about what shape the universal postal service should take as volumes steadily decline. If the universal postal service is to be operated in an economically sustainable way, the system of regulation must become more predictable and flexible and must allow both increased revenue and ways of limiting the costs of distribution. To meet the rising costs per letter delivered, and in that way enable the universal postal service to be maintained over time, it is of the utmost importance for PostNord to be allowed the scope to make gradual adjustments to the letter rate in Sweden.”

Source: PostNord

*SEK 10.38 = € / SEK 9.05 =$