Swiss Post generates less profit despite flood of Corona parcels
The COVID-19 crisis is affecting Swiss Post's half-year results: Consolidated net income for the first half of this year amounted to 30 million Swiss francs, 163 million Swiss francs less than in the previous year—even though parcel volume increased by 22 percent due to the boom in online retail.
The half-year result will be impacted by around 120 million francs due to the coronavirus pandemic, Swiss Post announced on Thursday. The operating result (EBIT) amounted to 61 million francs in the first half of the year, which is 208 million francs less than in the previous year.
Although parcel processing set a record, this was ultimately unable to offset the negative impact of the coronavirus on the overall Group result. The operating result of Postlogistics amounted to 108 million francs in the first half of the year, 40 million francs above the previous year's figure.
According to the press release, 17 million parcels were processed in April 2020 alone - never before in the 170-year history of Swiss Post have so many parcels been processed in one month.
In the first half of the year, parcel volumes increased by around 22 percent overall, with Swiss Post sending 87 million parcels from January to the end of June (previous year: 71 million). However, insurance payments and the reversal of provisions in connection with the robbery of an armored car in 2019 also contributed to the operating result.
However, the coronavirus pandemic also accelerated the trend towards digitalization, which is why the letter business suffered a decline of 7.8 percent, according to the report.
Fewer advertising mailings
There was a sharp decline in advertising mail in particular: this led to a fall in income of 72 million francs for addressed letters and items without an address. Postmail generated an operating result of 110 million francs in the first half of the year, down 84 million francs on the previous year.
Payment transactions collapsed in branches
The postal network also suffered losses in its core business due to the pandemic: Payment transactions in the branches fell by 15 percent. Sales of letters fell by 11 percent.
Because 20 million francs were set aside in the previous year due to organizational developments, the operating result nevertheless improved by one million francs. PostalNetwork posted an operating loss of 72 million francs in the first half of the year.
PostBus temporarily reduced its services due to the coronavirus. As a result, transport revenue fell by 17.8 percent compared to the previous year. Operating profit amounted to CHF 393 million after CHF 414 million in the same period of the previous year.
Less profit at Postfinance
According to the press release, Postfinance's operating profit fell by 86 million francs year-on-year to 60 million francs. The main reason for the decline was interest income, which fell by 31 million francs due to persistently low interest rates.
The coronavirus crisis also led to a sharp drop in cash transactions over the counter and at ATMs. Less cash was also exchanged for foreign currencies due to restrictions on travel. (SDA)
