Good first six months for Posten Norge
Posten Norge has delivered a good half-year performance. Turnover grew by three percent, despite a continued decline in letter volumes. The growth is in parcels as a result of increased online shopping.
Operating revenues in the first half of 2015 were MNOK 12 407, which is an increase of MNOK 364 (3 percent) on the corresponding period of 2014. Operating profit before non-recurring items (EBIT) in the first half of the year amounted to MNOK 314, which is MNOK 2 higher than at the same time last year. Developments in the mail segment were affected by the continued fall in letter volumes. Mail sent by the public sector accounted for the greatest decline in addressed mail (-9 percent) as a result of the transition to digital solutions. The Logistics segment is influenced by the reduced activity in the oil industry, but managed to achieve a growth in operating revenues of 5.5 percent, where underlying organic growth was 4.4 percent.
“The postal and logistics industry is faced with significant challenges. Mail volumes declined as expected by about six percent, while cyclical fluctuations in the oil industry affect the entire economy. However, we have delivered a performance in line with last year, which I’m very pleased about,” says CEO Dag Mejdell of Posten Norge.
On 9 June, the Norwegian Parliament adopted a new Postal Services Act. One important change is that Posten Norge’s remaining monopoly on letters under 50 grams has been terminated. Further, Posten Norge will no longer be required to distribute mail six days a week. The company will continue to restructure operations to meet new user needs and increased competition.
“Our biggest challenge is digitisation, but full competition for postal services will further tighten the requirements. I’m confident that Posten Norge will succeed against the competition. We provide world-class postal services, we cover every household and company across the country, and we have 18 000 skilled employees,” says Mejdell.
Posten Norge has a fine-meshed distribution network with 6000 mail carriers and 1400 in-store postal services with long opening hours and good quality. The nationwide postal network will continue to be very important in the future for the distribution of mail and an increasing number of parcels resulting from more online shopping. The Group’s total e-commerce volume has increased by 8 percent during the past year.
“People are shopping more and more online. That means solid growth in parcel volumes for Posten Norge,” says Mejdell.
In Q2, Posten Norge achieved an overnight delivery rate of 85.8 percent, which was 0.8 percentage points above the licence requirement. The other five licence requirements were also met by a wide margin in Q2 2015.
The Group’s sickness absence rate was 6.3 percent in the first half of 2015, which is a reduction of 0.3 percentage points on the same period in 2014.