Posten Bring: there has been solid growth within e-commerce

“We are pleased to see increased activity and that there is high demand for our services. Looking behind the results, we also see the effects of our efforts to keep costs down. There has been solid growth within e-commerce. However, demanding market conditions and narrow margins mean that it is important for us to maintain high cost-discipline going forward,” says Tone Wille, CEO of Posten Bring.

Operating profit (EBIT) for the first half of the year was NOK 261 million, an increase of NOK 33 million compared to the first half of 2023. Uncertainties in the geopolitical situation and macroeconomic developments reduce the purchasing power and put pressure on margins and profitability in the logistics industry. The Group has implemented a profitability programme, and with demanding market conditions, cost adjustments will be a major focus in the future.

E-commerce remains an important driver to growth

The Group’s revenue in the second quarter was NOK 6,293 million, an increase of NOK 297 million compared to the second quarter of 2023. Adjusted operating profit was NOK 213 million in the second quarter, an increase of NOK 91 million compared to the same period in 2023.

The challenging weather conditions at the start of the year resulted in additional costs to keep operations running. Ongoing cost adjustments and implementation of measures have contributed to keeping costs down, despite continued high inflation.

Logistics

Revenue from the logistics operations amounted to NOK 9,776 million for the first half of the year, an increase of NOK 299 million compared to the same period in 2023. The parcel volume from e-commerce (B2C) increased by 9.4 per cent in the first half of the year, compared to the same period last year. There is continued growth in parcels from e-commerce, especially from e-commerce platforms in China, while the commercial market has been characterised by weak market conditions. Adjusted operating profit for the logistics business was NOK 246 million in the first half of the year, a reduction of NOK 50 million compared to the same period in 2023.

Postal

Revenue from the postal segment was NOK 2,886 million in the first half of the year, an increase of NOK 72 million compared to the same period in 2023. Volumes for addressed mail continued to fall, with a decrease of 12.8 per cent for the first half of the year, compared to the same period last year. The volumes of unaddressed mail fell by 15.0 per cent. This was partly offset by a positive volume growth for Norgespakken of 22.1 per cent in the first half of the year, which was mainly driven by increased activity from second-hand platforms such as Finn and Tise.

Adjusted operating profit for the postal segment was NOK 69 million in the first half of the year, an increase of NOK 35 million compared to the same period in 2023. The positive profit development for addressed mail is mainly due to a good cost development in combination with increased volume from newspaper distribution.

In the first six months of the year, 90.1 per cent of addressed mail arrived within three days, and for the second quarter it was 91.4 per cent. This was well above the licence requirement of 85 per cent.

Sickness absence as a 12-month trend showed 7.0 per cent, which is 0.4 percentage points higher than at the same time last year. The number of personal injuries went up. The injury rate as a 12-month trend ended at 7.1, which is slightly higher than at the same time last year.

Key figures Q2 2024 (Q2 2023 in brackets)

Operating revenues (MNOK): 6,293 (5,995)

Adjusted earnings (MNOK): NOK 213 million (122)

Operating profit (EBIT) (MNOK): 281 (121)

Key figures H1 2024 (H1 2023 in brackets)

Operating revenues (MNOK): 12,263 (11,922)

Adjusted earnings (MNOK): NOK 201 million (229)

Operating profit (EBIT) (MNOK): 261 (227)

Equity ratio %: 29.9 (30.8)

Return on invested capital/ROIC %: 5.6 (3.1) *)

Return on equity (after tax) %: 3.3 (-1.0) *)

*last 12 months