Posten Norge has announced higher profits thanks to improved mail and logistics results in the latest financial quarter.
The Norwegian postal group increased revenues by 4.2% to NOK 5.9 billion in the July – September third quarter, while its adjusted operating profit improved by NOK 165 million to reach NOK 291 million. Both the logistics and mail segments saw an upturn in profits.
The logistics business increased revenues by 5.1% to NOK 4.5 billion and improved its adjusted operating profit by NOK 126 million to NOK 213 million. There was solid growth in e-commerce for consumers, corporate parcels and home delivery, both in and outside Norway. E-commerce volume increased by 19% over the past 12 months.
CEO Tone Wille welcomed this improvement: "Healthy growth and improved profitability characterise the trend in the logistics segment in the third quarter. We are growing with existing customers and winning new ones.”
"In Norway we have taken new steps to develop the distribution network of the future with optional delivery points, both outside and inside the home. This fall, we began offering delivery inside the home with digital door locks, across Norway. The pace of innovation is high, and I am proud that Posten Norge was named Norway's most innovative company in 2019 by InnoMag magazine," she added.
In Sweden the group is working on expanding Bring's parcel network in order to provide improved growth and more customers.
The Mail segment improved its adjusted operating profit to NOK 132 million in the third quarter, an increase of NOK 56 million compared with the same period in 2018. Significant cost adjustments were made in operations which largely compensated for the sharp 10.8% fall in addressed mail volumes.
In Norway, the group is currently preparing for its largest ever reorganisation when mail delivery is reduced to every other day from 1 July 2020, in line with the amendments to the Postal Act passed by the Storting (the Norwegian parliament) in June.
