Swiss Post report a drop in Q1 2014 profit
In the first quarter of 2014, Swiss Post achieved a Group profit of 199 million francs versus 222 million francs last year. The decline of 23 million francs is primarily due to reduced interest income resulting from persistently low interest rates on the financial markets and higher impairment charges. Operating profit (EBIT) stood at 253 million francs (previous year: 272 million francs). All four of Swiss Post’s markets – communication, logistics, passenger transport and retail finance – contributed to the positive quarterly results.
In the first three months of 2014, Swiss Post generated operating income of 2,138 million francs. This represents a drop of almost one percent year-on-year (previous year: 2,156 million francs) which could not be fully offset by reductions in expenses. Operating profit (EBIT) totalled 253 million francs, which was 19 million francs below the previous year’s level (272 million francs), and Group profit stood at 199 million francs (previous year: 222 million francs). All four markets contributed to the positive overall result. Prior-year figures have been normalised to take one-off items into account.
In the communication market, Swiss Post recorded an operating profit of 88 million francs, up slightly on last year’s results of 87 million francs. The decline in income at PostMail and Post Offices & Sales, caused by lower volumes, was offset by cost savings in these areas and by growth in income from Swiss Post Solutions.
The volume of addressed letters fell by 2.4 percent, and the number of unaddressed items was down 3.5 percent. In the logistics market, Swiss Post recorded an operating profit of 31 million francs (previous year: 33 million francs). This decrease is due to high competitive pressure. Parcel volumes were up 1.1 percent in Switzerland. In the passenger transport market, PostBus recorded an operating profit of 13 million francs versus 9 million francs last year. The improved results were mainly due to the expansion of services as well as to one-off transport revenue. The number of kilometres covered increased by 7.7 percent.
