Strong Nordic growth for Norway Post in 2007
Norway Post increased its revenue by 15.7 per cent in 2007 to NOK 27.4 billion. The largest increase occurred in the Logistics and IT segments. Earnings before taxes were NOK 949 million, compared with NOK 1 200 million in 2006.
Good progress was made in 2007 in terms of income growth, improved quality and strengthened positions in Norway and the Nordic region. Turnover from businesses outside Norway increased by NOK 2.1 billion, or 50 per cent over 2006, and comprised 22.8 per cent of the Group’s revenue in 2007.
This strong growth shows that we are on the right path in terms of strengthening our position in Norway and the Nordic region. Customers are increasingly Nordic, and Norway Post has to offer solutions that meet Nordic demands, says Norway Post CEO Dag Mejdell.
The Group’s profitability declined in 2007 due to increased personnel and transport costs, additional resources to improve delivery quality, and costs related to the expansion of CityMail.
Earnings before interest and taxes (EBIT) in 2007 were NOK 1 080 million, compared with NOK 1 313 million in 2006. EBIT before non-recurring items was NOK 826 million compared with NOK 1 283 the previous year. Norway Post’s EBIT margin in 2007 was 3.9 per cent, compared with 5.5 per cent in 2006. The Group has identified concrete initiatives to strengthen EBIT going forward, especially in the Post segment.
The extensive measures implemented last year to improve delivery quality for letters and packages have produced good results. 85.1 per cent of A-priority mail arrived overnight in 2007, compared with 82.4 per cent in 2006. The five other statutory license requirements were surpassed by a significant margin in 2007.
The quality improvement initiatives implemented in 2007 will give increasingly positive results in 2008.
1 USD = 5.33749 NOK
Norway Post increased its revenue by 15.7 per cent in 2007 to NOK 27.4 billion. The largest increase occurred in the Logistics and IT segments. Earnings before taxes were NOK 949 million, compared with NOK 1 200 million in 2006.
Good progress was made in 2007 in terms of income growth, improved quality and strengthened positions in Norway and the Nordic region. Turnover from businesses outside Norway increased by NOK 2.1 billion, or 50 per cent over 2006, and comprised 22.8 per cent of the Group’s revenue in 2007.
– This strong growth shows that we are on the right path in terms of strengthening our position in Norway and the Nordic region. Customers are increasingly Nordic, and Norway Post has to offer solutions that meet Nordic demands, says Norway Post CEO Dag Mejdell.
Increased costs
The Group’s profitability declined in 2007 due to increased personnel and transport costs, additional resources to improve delivery quality, and costs related to the expansion of CityMail.
Earnings before interest and taxes (EBIT) in 2007 were NOK 1 080 million, compared with NOK 1 313 million in 2006. EBIT before non-recurring items was NOK 826 million compared with NOK 1 283 the previous year. Norway Post’s EBIT margin in 2007 was 3.9 per cent, compared with 5.5 per cent in 2006. The Group has identified concrete initiatives to strengthen EBIT going forward, especially in the Post segment.
– We are not satisfied that earnings decreased in 2007, and measures have been initiated to strengthen future profitability. The conversion of 124 post offices to Post in shops is an important initiative, says Mejdell, pointing out that Norway Post must have both strong growth and good profitability to fulfill its ambitions and to strengthen its positions in the Norwegian and Nordic markets.
Effective measures
The extensive measures implemented last year to improve delivery quality for letters and packages have produced good results. 85.1 per cent of A-priority mail arrived overnight in 2007, compared with 82.4 per cent in 2006. The five other statutory license requirements were surpassed by a significant margin in 2007.
– The initiatives that have been carried out this year to improve delivery quality have been beneficial for our customers, but have contributed to lower profitability for the Group, says Mejdell.
The quality improvement initiatives implemented in 2007 will give increasingly positive results in 2008.
1 USD = 5.33749 NOK
