Nordic parcel growth, but weaker annual profit

17 Feb 2023 08:30 CET

Posten Norge's preliminary financial results for 2022 and the fourth quarter are
weaker than the previous year as a result of an unsettled market and increased
costs due to geopolitical conditions. In a demanding market, the Group has won
new customers and achieved growth in the parcel market.

The Group had organic growth in 2022 of 4.5 per cent. Revenues totalled NOK 23
429 million. Compared to 2021, this represents a decrease of 5.2 per cent,
mostly as a result of the sale of Frigoscandia Sverige at the end of 2021. The
sold business had NOK 2 568 million in revenues in 2021.

"We are very satisfied that we have won new large customers and increased our
market share in a demanding market. It's also gratifying that Posten Norge
demonstrates high delivery quality, satisfied customers and a high level of
public trust", says Group CEO Tone Wille of Posten Norge.

Unsettled market
2022 was characterised by geopolitical conditions that created considerable
instability in the market and record-high energy prices. High inflation and
rising interest rates have weakened household purchasing power and prospects for
economic growth. This has affected supply chains throughout the logistics
industry and Posten Norge's financial results.

Adjusted operating profit for 2022 was NOK 439 million, a decrease of NOK 1 086
million on the historically good results of 2021. The challenging market
conditions and significantly higher costs for the transport industry are
expected to continue in the future.

"In order to deal with abnormally high uncertainty going forward, we will
balance the need for increased cost efficiency with development measures that
ensure long-term competitiveness. We believe in continued growth, and will
prioritise investments in increased capacity and service development", says CEO
Wille.

Doubled growth in Nordic package volume over the past three years
In 2022, logistics volumes have remained sound despite a demanding market
situation. Parcel volumes from online shopping grew by 7 per cent. From 2019 to
2022, we have almost doubled our Nordic parcel volumes. Growth was particularly
high in Sweden in 2022.

The volume of addressed mail decreased by 11 per cent in 2022.

Posten Norge is the oldest and most innovative
In its 375th anniversary year, Posten Norge once again topped the list of
Norway's most innovative companies. The award for 2021 was presented by the
innovation magazine InnoMag in 2022.
"We are proud to be Norway's oldest company and to be named the most innovative.
It recognises the work we do and shows that we are on the right track", says CEO
Wille.

Posten Norge test and adopt new technology; everything from introducing a
data-driven value chain and machine learning that provides more accurate
information about delivery times to testing delivery with drones and robots.

Posten Norge is one of the few Norwegian companies that cuts climate emissions
in line with the Paris Agreement. An extensive conversion to emission-free
vehicles is under way, and as of 2022 the proportion of emission-free vehicles
was 44 per cent.

Sickness absence ended at 6.9 per cent for 2022, 0.9 per cent higher than the
previous year as a result of significant coronavirus-related absence. The injury
rate, H2, decreased to 7.0 compared to 9.3 in 2021.

Key figures Q4 2022 (Q4 2021 in brackets)
Operating revenues (MNOK): 6 423 (6 778)
Adjusted operating profit (MNOK): 17 (314)
Operating profit/loss (EBIT) (MNOK): -176 (239)

Key figures 2022 (2021 in brackets)
Operating revenues (MNOK): 23 429 (24 716)
Adjusted operating profit (MNOK): 439 (1 525)
Operating profit/loss (EBIT) (MNOK): -110 (1 462)

Equity ratio %: 30.0 (39.7)
Return on invested capital/ROIC %: 4.1 (16.4)
Return on equity (after tax) %: -3.9 (14.5)

The quarterly report for Q4 2022 is attached

More information:
Access the news on Oslo Bors NewsWeb site

582831_Quarterly Report 4th quarter 2022_EN_Final.pdf