PostNord has announced its financial results for the first quarter of 2024, with income rising by 43% to SEK 127m (US$11.6m) compared with the same quarter in 2023.
According to the post’s CEO Annemarie Gardshol, the income growth was largely down to improved earnings for PostNord Sweden and PostNord Strålfors, and the reduced negative impact of currency effects attributable to PostNord International. The quarter also included compensation for the universal service obligation in Denmark.
Gardshol continued, “To respond to lower volumes and the effects of cost inflation, we are continuing to adjust our prices and capacity. There is a high tempo in the implementation of our improvement programs. The aim is to gradually increase both the efficiency and flexibility of our business model. The fact that the group’s operating income increased for the second quarter in a row is proof that our measures and our focus on costs are paying off.
“In April we replaced one credit facility with a new one with a longer term. At the same time, a new two-year loan facility of SEK 1.5bn [US$138m] was agreed. PostNord’s financial preparedness therefore remains strong.”
Parcel business with growth potential
To ensure it achieves long-term growth in the parcel market, PostNord will continue to develop its e-commerce services, including an extensive network of parcel distribution points such as parcel lockers, as well as home delivery services.
“We were also the first operator in the Nordic region to be awarded Nordic Swan Ecolabel e-commerce logistics, and we are pleased that the response to this has been very positive, with several customers now offering Nordic Swan Ecolabel deliveries with PostNord at their checkouts,” Gardshol added.
The post has also introduced a Cost Leadership program to create structurally improved profitability and strengthen its competitiveness. “We also believe that there is significant potential to further capitalize on the consolidated strength of PostNord’s Nordic parcel network, and there is significant growth potential in Nordic import volumes in particular,” Gardshol said. “The next major step will be taken in early May, when PostNord’s entire product organization comes together in one Nordic unit. This unit will support the countries and our international operations by continuing to establish a competitive, harmonized Nordic product portfolio.”
You can download PostNord’s interim Q1 2024 report here.
