Posti’s Parcel and Logistics sales outstrip Postal Services
Finland’s Posti has reported that its Parcel and Logistics net sales for the third quarter (Q3) grew to outstrip Postal Services. Overall, the group’s net sales increased by 0.7% to €378.6m in Q3, but its adjusted EBITDA drop 5.9% to €22.4m.
The combined parcel volume of Finland and the Baltic countries increased by 11%. However, the number of addressed letters decreased by 13% in Finland. Mail items covered by the universal service obligation accounted for 4.3% (3.9%) of all of Posti’s mail items.
In a statement issued today (26 October), Commenting on the results, Heikki Malinen, President and CEO, said: “E-Commerce is growing very strongly and Posti, as Finland’s largest logistics company, is active in this development.
“Posti continues to undergo a multi-year structural transformation as communication shifts from paper to digital and competition increases in traditional postal operations. A clear indication of this transformation is that Parcel and Logistics Services accounted for a higher share of Posti’s net sales in the third quarter than traditional postal services. The decline in the volume of addressed letters shows signs of accelerating, but e-commerce trends and the digital transformation also present opportunities for growth.
“Posti has developed a new strategy and updated its financial targets for the next three years. The postal sector is in a transformation of historic proportions, and Posti will continue its determined efforts aimed at renewal. The company has a strong focus on improving quality and the customer experience. Posti will pursue growth in e-commerce and related solutions, end-to-end logistics solutions ranging from transport to in-house logistics, new services and OpusCapita.
“At the core of the strategy are four objectives that will allow Posti to achieve renewal and emerge as a winner through this period of transformation: success in e-commerce, maintaining the importance of letters among customers, the renewal of Posti’s service culture, and leveraging the digital transformation to improve Posti’s services.
“The third quarter of the year was challenging for Posti. Net sales grew by nearly one percent, but the result was modest. Among the positives during the period were strong parcel growth and the high volumes of freight operations. The challenge was the steep decline in the volume of letters, which we were not able to fully compensate for in our production in the third quarter.
“The restructuring of the OpusCapita segment is moving ahead as planned. The new OpusCapita will focus on B2B customers by providing global solutions for sourcing, invoice processing, cash management and financing.”
