Stable third quarter for Swiss Post

Swiss Post has reported a group profit of 503m francs for the first three quarters of 2015. This was up 9m francs compared to the first three quarters of 2014. The group operating profit (EBIT) was up 8m francs on last year. Swiss Post attributed the slight increase to “higher operating profit on the financial services market despite the ongoing low interest rate situation”.

The company added that “the number of addressed letters declined further – albeit at a slower rate” and the logistics market “continues to face intense competition”.

In the communication market, Swiss Post recorded an EBIT of 166m francs in the first three quarters of 2015, which was down 22m francs on 2014.

Swiss Post commented: “The decline in income at PostMail and Post Offices & Sales, caused by slightly lower volumes, could not be offset, despite a reduction in expenses in all the units within this market and the higher contribution to the results from Swiss Post Solutions.

“The number of addressed letters fell by just 1.0%, while the number of unaddressed items actually rose by 1.2%.”

In the logistics market, Swiss Post’s EBIT was down 2m francs to 95m francs. Declines in revenue from small consignment transport and warehousing, combined with lower income in the fuel business, were mostly offset by higher parcel volumes and optimized operating expenses. Parcel volumes were up 2.5%.

In the passenger transport market, Swiss Post’s EBIT was down 7m francs to 29m francs.

“While operating income remained in line with the previous year, operating expenses rose year-on-year due to the higher headcount,” said Swiss Post. “The number of kilometres covered by PostBus increased by 1.0%.”

Swiss Post’s financial services arm PostFinance achieved an EBIT of 351m francs, up 42m francs on 2014.

Looking forward, Swiss Post said that it “expects to meet the financial goals of its owner again in 2015”, adding that group profit for the year is likely to be slightly below the previous year’s level.