PostNord: Third quarter 2022 – challenging macro situation requires continued adaption of the business

Third quarter 2022

• Net sales totaled SEK 9,456 million (9,340), a decrease of -2 percent (5) in fixed currency for like-for-like units
• Overall, parcel volumes decreased by -4 percent (6) due to lower business-to-consumer volumes 
• Mail volumes decreased by -11 percent (-9) 
• Operating income (EBIT) totaled SEK 65 million (323)

Comments from Annemarie Gardshol, CEO

Challenging macro situation requires continued adaption of the business 

The Group’s sales totaled SEK 9,456 million (9,340) in the quarter, a decrease of -2 percent (5) in fixed currency for like-for-like units. Operating income totaled SEK 65 million (323) and adjusted operating income SEK 108 million (284). Over the year, the rate of decrease in parcel volumes in relation to the comparative quarter last year slowed. During the quarter, parcel volumes decreased by -4 percent (6) while mail volumes fell -11 percent (-9). The decrease in income for the Group is attributable in the main to our Danish operation and our Direct Link business. In addition, our income was adversely affected by higher costs arising from the challenging macro situation. 

The adaptations of the business that PostNord embarked on in early 2022 are continuing and have gradually been intensified. We are taking decisive action here and now, with further price adjustments for our products and services, as well as fuel surcharges for transportation. We are also adjusting our capacity and our offering. We are clarifying our direct mail portfolio through a greater focus on addressed direct mail and more digital and target-group oriented services. At the same time, we are discontinuing the unaddressed direct mail service.

Concurrently with cost-saving measures, we are continuing to invest long term to secure our competitiveness. The expansion of our parcel locker network continues – at the end of the quarter, we had more than 8,000 operating across the Nordic region. In addition, our two new terminals in Norway and Finland are now up and running and will play an important role in assuring long-term growth in these countries. We have a strong position in the Nordic market and a solid financial position, which are to our advantage at a time when the parcel delivery market faces consolidation. In an uncertain world, we are also well positioned in stable customer segments, with attractive services.

High pace maintained in our green transition

Our green transition is based on both energy efficiency action and a transition to fossil-free alternatives. Here, both green electricity and biofuels are important factors in enabling us to achieve our goal of fossil-free transportation by 2030. In the quarter, we approved decisions to procure 30 electric vans with the required charging infrastructure in Finland and 23 biogas trucks and two electric trucks in Norway. During the autumn, we will also replace 100 diesel cars with electric cars in Denmark. In Sweden, we have established “green corridors” between Stockholm, Gothenburg and Malmö, with the result that the bulk of our transport operations between these cities are already fossil-free. In all, 60 percent of the energy consumed in our own vehicle fleet is from renewable sources.

Further information

This report, presentation material and video are available on our Group website. 

Contact person: Björn Bergman, Head of Group Brand & Communication. 
This information is of such a nature that PostNord AB (publ) is obliged to make it public pursuant to the EU Market Abuse Regulation. The information was submitted, through the agency of the contact stated above, for publication at 08.30 CET on October 28, 2022. 

For further information, please contact:
PostNord Media Relations, tel: +46 (0)10 436 10 10, e-mail: press@postnord.com 

We make everyday life easier. PostNord is a leading provider of parcel and logistics services to, from, and within the Nordic region. We ensure the provision of a postal service to households and businesses in Sweden and Denmark, regardless of where they live and work. PostNord connects companies, public authorities and consumers and enables business, trade and communication in the Nordic region. With our expertise and strong distribution network, we put in place the conditions for the e-commerce, distribution, logistics and communication solutions of tomorrow in the Nordic region. In 2021, the Group had around 28,500 employees and sales of SEK 40.7 billion. The Parent Company is a Swedish public limited company with Group headquarters in Solna, Sweden. Visit us at www.postnord.com