Parcel growth in an uncertain market

07 Nov 2022 08:30 CET

Posten Norge's financial results so far in 2022 have been characterised by a
weak e-commerce market and record-high transport and energy prices. Posten Norge
has nonetheless managed to increase parcel volumes from e-commerce by 7.1 per
cent in the past 12 months.

Organic growth so far this year is 5.0 per cent. Revenues for the Group in the
third quarter of 2022 amounted to NOK 17 006 million. Adjusted operating profit
in the third quarter was NOK 422 million, a decrease of NOK 789 million on the
same period in 2021.

"The results reflect the fact that we are operating in a market characterised by
uncertainty and weakened purchasing power. In such a situation, customers look
to us for a reliable and attractive logistics partner, and that has resulted in
a growth in e-commerce parcel volumes of 7.1 per cent," says CEO Tone Wille in
Posten Norge.

Geopolitical tension combined with the energy crisis and weakened purchasing
power means that Norges Bank, among others, expect a moderate recession and
continued uncertainty in the future.

"We expect challenging market conditions going forward, so we will be cautious
and continue to focus on costs. At the same time, we must think long-term and
take advantage of the attractive opportunities that open up in an uncertain
market. We will invest for future growth," says Wille.

What the numbers say
Organic growth in the third quarter alone was 5.9 per cent. Revenue for the
Group in the third quarter of 2022 amounted to NOK 5 556 million. Compared to
the third quarter of 2021, this represents a decrease of 6 per cent as a result
of Frigoscandia Sverige being sold at the end of last year. Adjusted operating
profit in the third quarter of 2022 was NOK 134 million, a decrease of NOK 268
million on the same period in 2021.

The Logistics segment has achieved revenues so far in 2022 of NOK 13 681
million. Organic growth was 9.3 per cent. Adjusted operating profit is NOK 641
million so far in 2022, a decrease of NOK 449 million on the same period last
year.

The Mail segment has achieved revenues so far in 2022 of NOK 3 887 million, a
decrease of NOK 198 million compared with the same period last year. This was
mainly due to a continued fall in the volume of addressed mail. Adjusted
operating loss is NOK 75 million so far in 2022, a decrease of NOK 261 million
on the same period last year.

In the third quarter of this year, 91.8 per cent of addressed mail was delivered
within three days. This was well above the licence requirement of 85 per cent.

Sickness absence as a 12-month trend was 6.7 per cent in September, much of
which was related to coronavirus. The number of personal injuries dropped, and
the injury frequency rate as a 12-month trend continues in a positive direction
to 7.3 in September.

Key figures year to date 2022 as at Q3 (2021 in brackets)
Operating revenues (MNOK): 17 006 (17 939)
Adjusted operating profit (MNOK): 422 (1 211)
Operating profit/loss (EBIT) (MNOK): 66 (1 222)
Equity ratio: 31,2 (37,7)
Return on invested capital/ROIC: 7,1 (19,5)
Return on equity (after tax): 1,6 (18,5)

Key figures Q3 2022 (2021 in brackets)
Operating revenues (MNOK): 5 556 (5 913)
Adjusted operating profit (MNOK): 134 (402)
Operating profit/loss (EBIT) (MNOK): 121 (402)

The quarterly report for Q3 2022 is attached

More information:
Access the news on Oslo Bors NewsWeb site

574862_Quarterly Report 3rd quarter 2022 .pdf