Swiss Post Q1 – Revenue and profit up

Swiss Post saw its profits rise by a third in the first quarter of the year to 159 million Swiss francs (£139.6 million) on revenue of 1,749 million Swiss francs (1,436.3 million pounds).

“Swiss Post started the year well in the first quarter and we are on the right track both financially and strategically,” says Alex Glanzmann, Head of Finance at Swiss Post. “However, despite this good result, there is still a lot of hard work ahead of us.”

Battling headwinds such as the 10% drop in parcel volumes, PostFinance contributed to higher profits and revenues. Interest income from higher fees on client assets and increased activity in the interbank market, as well as fees and services from its new client products contributed to the growth in revenue from this division.

Mail volumes fell 1.8% as part of the current global trend, but parcel volumes fell sharply by 10% as the lifting of lockdown restrictions allowed more people to shop in stores physical. Swiss Post expects parcel volume growth this year, but nowhere near as strong as during the pandemic. As such, the postal operator is always planning new infrastructure for future parcel volume growth.

“The additional capacities are necessary to ensure that the handling and delivery of our parcel volumes, which are increasing over the long term, are both efficient and environmentally friendly,” says Alex Glanzmann. “However, volume fluctuations and uncertain forecasts of economic trends call for forward-looking capacity and cost management.”

Logistics Services made the largest contribution to the Group’s financial results, although it was still down 11% compared to the same period in 2021 thanks to lower parcel volumes.

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