Swiss Post increased its group profit by 8.6 % to CHF 909 million (EUR 579 million) in 2007generated mostly through the PostMail, PostLogistics and PostFinance units which profited from the
favourable economic environment and efficient and customer-oriented service. In 2008, the companyplans to build up its equity base and to achieve appropriate profits.Swiss Post’s operating revenues increased by 10.3 % to CHF 8.7 billion (EUR 5.5 billion).PostFinance and the new Strategic Customers & Solutions (SKL) Group unit made a majorcontribution to sales growth. In addition, Swiss Post consolidated the entire annual sales of GHP(364 million francs) for the first time last year.
At operating level, all the segments of Swiss Post providing products and servicescontributed to the Group’s positive result in different ways.
PostMail’s results fell short of last year’s results mainly due to higher expenses forcommissioning the new letter centres (REMA project). The decline in the number of letters carriedcontinued, though at a slower pace, as a result both of substitution and of cost optimization dueto large customers grouping consignments.
PostLogistics succeeded in increasing its operating income this year thanks to acquisitionsand expansion of customer and industry solutions. However, it generated a lower result than in 2006due to higher costs for acceptance services.
PostFinance, the financial services arm of Swiss Post, again posted a large increase in newdeposits achieving a new record operating result of CHF 318 million (EUR 202.68 million).
Swiss Post said it was able to increase its equity base significantly to CHF 2,470 million(EUR 1.57 million) before profit distribution compared to CHF 1.605 (EUR 1.02 million) last year.The company is aiming to achieve an industry-standard equity base since its current equity base isstill inadequate compared with the sector as a whole and the public value remains qualitativelyhigh.
Swiss Post also needs additional funds to restructure its pension fund. This year Swiss Postintends to pay CHF 250 million (EUR 159.34 million) to the Swiss Confederation for the first timeas requested by the administrative board for the consolidation of its pension fund. Under balancedconditions, Swiss Post will in future be able to draw the necessary funds for a successfultransaction from its own resources.
Swiss Post said its growth-oriented strategy and the stable earnings trend put the company ina good position to withstand any further erosion of the letters monopoly which is currently set at100g. In view of the proposed further deregulation, however, politicians must ensure sufficientfunds are available to finance the defined scope of the basic service, the company added.
