Profitability measures result in profit growth for Posten Norge

Posten Norge AS generated MNOK 24 678 in revenue in 2017, representing an organic growth of 0.7 per cent.  Adjusted profit (EBITE) amounted to MNOK 703, an improvement of MNOK 58 from the previous year.

Both segments showed profitability improvements in 2017. Logistics operations outside Norway had a solid profit growth due to strong and profitable increases in parcels and home delivery, as well as international transport. In addition, unprofitable businesses were discontinued.

Continued focus on profitability improvements in Logistics

Implemented measures, together with profitable organic growth of 2.1%, resulted in EBITE for the Logistics segment in 2017 of MNOK 129, an improvement of MNOK 80 compared to 2016. In the Norwegian logistics business, offshore operations continued to be impacted by poor economic conditions, but with some signs of new activity in the fourth quarter. Profitability for the segment is not satisfactory, and the work on introducing cost-effective measures continues.

„The profitability improvement in logistics shows that we are on the right track. A more efficient logistics network in Norway and the standardisation of processes through new IT systems will further enhance cost effectiveness. In addition, the capacity of the network will increase so that we can take our share of the growth in e-commerce,“ says Tone Wille, CEO of Posten Norge.

The hub of the new network, Logistics Centre Oslo, opened in the fourth quarter, and is one of Europe’s most modern and environmentally friendly logistics facilities. The logistics network is also being strengthened outside Norway, mainly through partners. In January this year Bring opened a new terminal outside Gothenburg in Sweden.

Successful restructuring in Mail

The Mail segment had an EBITE of MNOK 843 in 2017, an improvement of MNOK 43 on 2016. The decline in mail volumes was compensated for by focused adaptation to market developments and by the Group’s timely restructuring measures.

„At the start of 2018 we implemented one of the largest changes in the history of Posten Norge by shifting from two addressed mail streams to one. Mail volumes will continue to fall, and the next necessary step will be fewer distribution days,“ says Wille.

A proposal for a legislative amendment to allow for a transition to mail distribution every other day from 2020 was distributed for consultation in January by the Ministry of Transport and Communications.

Digitalisation and innovation

In 2017 the Group developed a new digital strategy and established a competence centre for digital innovation.

„Digitalisation is a megatrend – everything that can be digitalised will be digitalised. We want to drive innovation and find solutions for today’s challenges and tomorrow’s opportunities,“ says Wille.

Absence due to sickness  – all-time-low

The Group’s focus on systematic HSE activities has resulted in positive results. The rates of injuries and absence due to sickness have both decreased significantly in recent years.

Absence due to sickness in 2017 was 5.8 per cent, a decrease of 0.3 percentage points compared with the same period in 2016. This is the lowest rate ever measured in Posten Norge.

Highlights 2017 (2016)

Revenue: MNOK 24 678 (24 772)

Adjusted profit (EBITE): MNOK 703 (645)

Operating profit (EBIT): MNOK 692 (178)

Cash flow from operating activities: MNOK 592 (945)

Return on invested capital (ROIC): 9.8 per cent (9.0)

Return on equity (ROE): 6.3 per cent (0.7)

Highlights Q4 2017 (Q4 2016)

Revenue: MNOK 6 718 (6 432)

Adjusted profit (EBITE): MNOK 326 (267)

Operating profit (EBIT): MNOK 275 (-207)

Cash flow from operating activities: MNOK 628 (696)

Quelle: www.posten.no

Foto „head“: www.pixabay.com / geralt