“Good” results for Swiss Post International

Swiss Post International has kept 2010 operating profit (EBIT) on a par with 2009 levels at EUR 35m. The company increased its return on sales to 6.1%, compared to 2009 levels of 4.7%.

In financial year 2011, it anticipates sales growth of 6 to 7%.

Operating in the international mail, parcel and express business, Swiss Post International achieved its fifteenth straight profit in 2010.

Operating income declined to EUR 571m. Due to a change in the accounting under IFRSs, operating income for 2009 was restated at EUR 745 million. The sharp decline of EUR 174m was due mainly to the change from gross to net presentation in the 2010 reporting period.

“Swiss Post International expects sales growth of 6 to 7% in financial year 2011,” said Daniel Bättig, head of international mail at Swiss Post International.

“Following a period of cost optimisation, the company is now focusing more on profitable sales growth. This is to be achieved on the back of improvements in logistics and IT as well as through the development of the offering, which has been systematically structured to reflect the requirements of the relevant sectors, which include mail order, tourism, press and publishing”, the company said.

In 2010, Swiss Post International developed a returns solution for the international mail order business, which enables end customers in 18 countries to return goods to the retailer free of charge.

For companies in the tourism sector, it created the holiday brochure platform www.holiday-infoshop.com, where providers can target their offerings at different target groups and holiday interests.

For French-language newspaper publishers, Swiss Post International opened up additional market potential outside their home markets by acquiring Swiss press specialist EDIGROUP. EDIGROUP markets publishing products from French-speaking areas and dispatches press publications worldwide.

Pursuing a strategy of growth in niche markets, Swiss Post International has generated free cash flow every year since it was established in 1996. The company first entered European mail markets, expanded into the USA and then extended its activities into Asia. Today, Swiss Post International has a presence in all major cross-border mail markets through either its own companies or sales agents.

Bättig added: “Expansion will now be followed by better penetration of existing national markets, where we are positioning the Swiss Post quality brand and our offerings more firmly at a regional level.”

In 2010, Swiss Post International entered additional regional markets in Finland and the United Kingdom through partner companies.

“The partnership programme and the move into retail continue to be essential drivers in growing our UK operations. Partners and new customers want our products, appreciate our flexibility and willingness to accommodate their needs, and like having access to our worldwide distribution network,” said Paul Taylor, chief executive, Swiss Post International UK.

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