Swiss Post reports drop in profits
In the first six months of 2016, Swiss Post generated a group profit of 313m francs, 78 million francs less than in the first half (H1) of 2015. At 383m francs, operating profit was 121m francs down on H1 2015.
In a statement issued today (25 August), Swiss Post attributed the results to “an ongoing decline in the volume of letters, growing pressure on parcel margins and low interest rates in the financial services market”.
On the plus side, operating income rose slightly by 1.2% to 4,150m francs.
In the communication market, Swiss Post achieved an operating profit of 94m francs, down from 137m francs in H1 2015.
“The decline in the volume of letters was more pronounced year-on-year, with the number of addressed letters falling by 3.5%,” said Swiss Post. “The operating profit posted by Swiss Post Solutions totalled 10m francs, 4m francs higher than the previous year’s figure.”
PostLogistics’ operating profit was down from 65m francs to 52m francs.
“The logistics market continues to be characterized by increasing competition and price pressure, both nationally and internationally,” said Swiss Post. “Despite additional income from the 6.5% rise in parcel volumes and increased demand for value logistics solutions, operating profit fell. This decline is due to the Group unit’s adapted internal performance mandate.”
Interestingly, Swiss Post’s passenger transport subsidiary, PostBus, did see an increase in its operating profit, which was up by 2m francs to 21m francs. Swiss Post said that the main factor responsible for this positive trend was the ongoing low price of fuel – and then added: “As the budgets of the public entities which act as contracting bodies for transport services are squeezed, the pressure on prices is rising even more.”
Click here to see the full Swiss Post statement.