Posten Bring CEO: We have succeeded in cost efficiency and increased productivity
In the first half of the year, Posten Bring reported a turnover of NOK 11,922 million, an increase of NOK 471 million, compared to the first half of 2022.
Adjusted operating profit in the first half of the year was NOK 229 million, a decrease of NOK 59 million , compared to the same period last year. Packages from online commerce (B2C) as a 12-month trend increased by 10 percent compared to the previous year
– In the first half of the year, we have achieved higher growth in parcels from online shopping than the rest of the market. Growth is particularly good for second-hand trade and private trade from online portals, says CEO Tone Wille in Posten Bring.
The first six months of the year have been characterized by continued unrest in the markets and accompanying cost growth.
– During this period, we have made good adjustments in the operation and succeeded in cost efficiency and increased productivity, especially in our Norwegian operations, says the CEO.
The operating profit (EBIT) in the first half of the year was NOK 227 million, an increase of NOK 282 million compared to the first half of 2022. Organic growth in the first half of the year was 1.0 percent.
Logistics
The turnover from the logistics business was NOK 9,477 million in the first half of the year, an increase of NOK 330 million compared to the same period in 2022. Organic growth in the first half of the year was 2.2 per cent.
Despite weak market growth within online shopping so far this year, the group increased parcel volume by 8.6 per cent in the first half of the year, compared to the first half of 2022.
The group has also had growth of 5.8 per cent in the business market for parcels in the first half of 2023, compared to the same period last year. Adjusted operating profit was NOK 296 million in the first half of the year, a reduction of NOK 111 million compared to the same period last year.
The profit development was characterized by weak market development and a higher cost level in the period. Ongoing cost adjustments and the implementation of measures have helped to keep the cost trend down.
The postal segment increased turnover by NOK 105 million in the first half of the year, compared to the first half of last year. Addressed mail fell by 11.5 per cent and unaddressed mail fell by 11.2 per cent in the first half of the year, compared to the same period last year. The Norgespakken had positive volume growth, with growth of 20.2 per cent in the first half of 2023, compared to the same period last year.
Adjusted operating profit for the Post segment was NOK 34 million in the first half of 2023, an increase of NOK 47 million compared to the same period last year. The positive profit development was mainly driven by profitable import volumes within addressed mail, as well as positive volume development on the Norgespakken.
The delivery quality is good. In the first six months of the year, 91.9 per cent of addressed mail was delivered within three days, which is well above the national requirement of 85 per cent.
Sickness absence in the past 12 months was 6.6 per cent, which is on a par with the same time last year. The number of personal injuries decreased. The injury rate in the last 12 months ended at 6.3 compared with 7.4 at the same time last year.
Key figures 2nd quarter 2023 (2nd quarter 2022 in brackets)
Operating income (MNOK): 5,995 (5,814)
Adjusted operating profit (MNOK): 122 (144)
Operating profit (EBIT) (MNOK): 121 (-161)
Key figures 1st half 2023 (1st half 2022 in brackets)
Operating income (MNOK): 11,922 (11,451)
Adjusted operating profit (MNOK): 229 (288)
Operating profit (EBIT) (MNOK): 227 (-55)
Equity ratio %: 30.8 (30.4)
Return on invested capital/ROIC %: 3.1 (10.0) *)
Return on equity (after tax) %: -1.0 (4.6) *)
* last 12 months
