Increased revenue, better financial results and record parcel volumes

16 Feb 2024 08:30 CET

Posten Bring's revenue in 2023 was NOK 24 394 million, an increase of NOK 965
million compared with 2022. Adjusted operating profit for 2023 was NOK 716
million, an increase of NOK 310 million compared with 2022. For the first time,
the Group processed over 100 million parcels in one year.

"2023 has been characterised by market turmoil, high inflation, and increased
interest rates, which have dampened consumption. Nevertheless, we have managed
to achieve significant growth, especially in parcels from online shopping, and
can point to increased revenues and better financial results compared to the
previous year," says Tone Wille, CEO of Posten Bring.

Exceeded 100 million parcels
Revenue for the Logistics segment was NOK 19 407 million in 2023, an increase of
NOK 517 million compared with 2022. Adjusted operating profit for the Logistics
segment was NOK 689 million in 2023, a decline of NOK 51 million compared with
2022.

A variety of measures and cost adjustments have been implemented to keep costs
down.
Parcels from online shopping increased by 8.4 per cent in 2023 and, for the
first time in the Group's history, over 100 million parcels were processed in a
year.

Letter mail volumes declining
The Mail segment increased its revenue in 2023 by NOK 437 million compared with
2022. Adjusted operating profit for the Mail segment was NOK 294 million in
2023, an increase of NOK 326 million compared with 2022. The positive profit
trend was driven by profitable import volumes and currency effects within
addressed mail, increased volume for "The Norgespakken" and increased
productivity resulting in lower costs in the network.

Delivery quality for letter mail in the fourth quarter was 89.4 per cent, which
is well above the licence requirement of 85 per cent within three days. The
volume of addressed mail fell by 12.6 per cent in 2023 compared with the
previous year. Letter volumes have fallen by over 80 per cent since the turn of
the millennium.

In January 2024, the government appointed an expert committee to look at the
future of postal services and at whether Posten Bring should be given new tasks
to meet societal needs other than postal distribution alone. The committee will
submit its recommendation within one year.

In 2023, the Group reached an important milestone in its environmental work:
Fifty per cent of the Group's vehicles used renewable energy sources. By the end
of 2023, the Group had 2 972 vehicles running on fossil-free energy sources.
More than half of the country's inhabitants now receive mail and parcels
delivered by electric vehicles.

Sickness absence for 2023 ended at 6.7 per cent, an improvement of 0.2
percentage points compared with last year. The injury frequency rate decreased
and ended at 6.4 which is lower than at the same time last year.

Key figures Q4 2023 (Q4 2022 in brackets)
Operating Revenues (MNOK): 6 724 (6 423)
Adjusted operating profit (MNOK): 214 (16)
Operating loss (EBIT) (MNOK): 198 -209)

Key figures 2023 (2022 in brackets)
Operating Revenues (MNOK): 24 394 (23 429)
Adjusted operating profit (MNOK): 716 (406)
Operating profit (loss) (EBIT) (MNOK): 599 (-143)
Equity ratio %: 29,7 (29,9)
Return on invested capital/ROIC %: 6,1 (3,8)
Return on equity (after tax) %: 2.2 (-4.3)

The quarterly report for Q4 2023 is attached.

More information:
Access the news on Oslo Bors NewsWeb site

611117_4th quarter report 2023 Posten Bring EN.pdf