Swiss Post profit soars 35% for H1

Swiss Post has generated Group profit of 484m Swiss francs for H1 2010 – an increase of 35% year on year. Swiss Post posted good results in all four markets, primarily due to a rise in customer deposits, higher net interest income and the revival of the economy, the company said.

Ongoing and completed cost reduction programmes in the areas of logistics and letter post also impacted positively on profit. In the same period the headcount increased by 562 full-time equivalents.

Swiss Post said it expects a good full-year result. The Group is continuing its efforts to generate results in line with the industry standard in all four markets.

From January to June 2010, Swiss Post generated Group profit of 484m francs. That is 126m francs or 35% more than in the same period last year (358m francs).

The increase was primarily attributable to a rise in customer deposits, considerably higher net interest income than in the first six months of the previous year, and the improved economic situation, one result of which was greater volumes of promotional mailings and parcels.

Overall, operating income (sales) rose by 105m to 4.3bn francs (previous year: 4.2bn). At the same time, expenditure fell, mainly due to efficiency gains – from the new letter centres and cost reductions in logistics – as well as currency effects.

In the communication market an operating result of 79m francs was generated, mirroring that of the previous year. The decline in addressed letters continued, albeit at a slower pace; the volume of mail was 2.6% lower by the middle of the year than it was at the same time a year before. The price cuts introduced on 1 July 2009 and the assumption of VAT also had a negative impact on the figures. However, an increase in unaddressed promotional mailings and the effects of various cost-reduction measures stemmed the fall of the PostMail operating result; it was 109m francs (previous year: 127m). At Swiss Post International, the difficult economic environment in some countries affected the result, which was just below that of the year before at 27m francs (29m last year). Swiss Post Solutions generated a break-even result, thanks mainly to cost-reduction measures (previous year: minus 10m francs). Post Offices & Sales improved its result by 10m francs thanks to cost reductions and increased revenue from non-postal items, generating minus 57m francs.

In the logistics market the result rose from 15 to 76m francs. PostLogistics benefited from an increase in parcel volumes (+4.5%), thanks in part to the improved economic situation and electronic trade, as well as to considerable efficiency gains. The retail finance market (PostFinance) made the largest contribution to the Group result, 274m francs (previous year: 198m francs). Higher customer deposits and higher net interest were the main drivers of this increase. In the continually expanding market for public passenger transport, PostBus achieved an operating result of 17m francs (previous year: 24m francs). The decrease in comparison to the previous year is due to, among other factors, the enhancement of the PostBus offering.

Key figures for the Group

Figure

Unit

1st half of 2010

1st half of 2009

1st half of 2009

Operating income CHF m 4,311 4,206 8,558
Operating result1 CHF m 487 365 721
As % of operating income % 11.3 8.7 8.4
Group profit CHF m 484 358 728
Total assets CHF m 92,049 82,571 84,676
Equity CHF m 3,797 3,063 3,534
Investments2 CHF m 130 147 431
Headcount at Swiss Post Group (excluding trainees) FTEs3 45,099 44,537 44,803
Trainees at Swiss Post Group FTEs3 1,856 1,676 1,756

1 Operating result corresponds to result before consideration of non-operating financial result and taxes (EBIT).
2 Investment in tangible fixed assets, participations & intangible assets.
3 Average workforce in full-time equivalents.

Selected key figures for segments (Group units) 30 June 2010

Market

Unit

Operating income (in CHF m)

Operating result (in CHF m)1

Communication market 79
Communication market PostMail2 1,310 109
Communication market Swiss Post International2 382 27
Communication market Swiss Post Solutions 327 0
Communication market Post Offices & Sales2 854 -57
Logistics market PostLogistics2 738 76
Retail finance market PostFinance 1,164 274
Public passenger transport market PostBus4 342 17
Other5 493 41

Selected key figures for segments (Group units) 30 June 2009

Market

Unit

Operating income (in CHF m)

Operating result (in CHF m)1

Communication market 79
Communication market PostMail2 1,422 127
Communication market Swiss Post International2 453 29
Communication market Swiss Post Solutions 325 -10
Communication market Post Offices & Sales2 660 -67
Logistics market PostLogistics2 726 15
Retail finance market PostFinance 1,040 198
Public passenger transport market PostBus4 314 24
Other5 479 49

1 Operating result corresponds to result before consideration of non-operating financial result and taxes (EBIT).
2 Figures for previous year only comparable to a certain extent due to changes in allocation of products.
3 Previous year’s figures for SPI adjusted as a result of restatement.
4 In the field of regional public transport, PostBus is subject to the DETEC ordinance on the accounting of licensed companies (REVO). Results prepared in accordance with REVO and IFRS differ.
5 Includes management and service units such as Real Estate, Information Technology, etc.

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