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The Swiss Post generated an operating result (EBIT) of 160 million Swiss francs in the first half of 2024. This is in line with expectations and last year’s level. In comparison to the first half of 2023, the Post recorded an increase of 256 million and 8 million Swiss francs in operating income and profit, respectively.
(Bern) The stable half-year result confirms that the Swiss Post is on the right track with its strategy. It aims to further develop its public service both physically and digitally: provided independently and consistently aligned with the changing needs of people and businesses in the country.
The financial result of the first half of the year for the Swiss Post is at last year’s level. While profit and revenue (operating income) are slightly better than in the first half of the previous year, the operating result of 160 million Swiss francs is about 5 million lower than in the previous period. “In particular, we have succeeded in increasing the result in the core logistics business with letters and parcels, compensating for the slowed result growth at PostFinance, mainly due to interest rates. The employees have once again made a tremendous effort to ensure that the Post’s services are provided to their customers with high quality,” says Alex Glanzmann, CFO of the Post. “As in the past, the Post must expect strong headwinds in the future. Specifically, this means: fewer letters and counter deposits year after year, ongoing pressure on margins in the parcel market, and subdued prospects in the interest business,” explains the CFO. With healthy finances and a robust, holistic strategy, the Post is confident in its ability to successfully tackle these challenges going forward.
The Environment in the Parcel Market Remains Challenging
The largest EBIT contribution came from the Logistics Services sector, with an increase of 44 million Swiss francs to a total of 220 million Swiss francs. However, the decline in volume continues: in the first half of the year, employees sorted and transported fewer letters than in the previous year. While letters remain a key pillar in the Post’s financial results, customer behavior is irrevocably shifting towards digital offerings. The structural decline also continued in the first half of 2024 – at -4.6 percent, however, slightly slower than in the previous year (-6.0 percent). The price measures for letters effective from January 1, 2024, have a supportive effect on the financial result. While the volume of international small parcel shipments has increased, the Post recorded a decline of -5.6 percent in parcels. Counter transactions in the Post Network sector are also continuing to decline (-11.8 percent compared to the previous year). The new strategic partnerships and the “Post Mobile” offering launched at the beginning of the year have a positive impact on the results but cannot compensate for the significantly declining volumes. The ongoing decline underscores the necessary transformation of the branch network. It remains central that the Post stays close to the needs of its customers – physically and digitally, regionally on-site. Therefore, the Post will continue to provide a comprehensive, future-proof branch network with around 2,000 serviced locations and about 600 self-operated branches. In the coming years, the Post will invest over 100 million Swiss francs in its network: in personnel, new formats, and modern branches.
The Post Aims to Secure Long-Term Relevance for the Population
With the first half of 2024, the Post has established a stable foundation to navigate the second half despite the known challenges. The Post aims to secure its relevance for the population in the long term through a stronger customer focus and services that are digitally and physically connected. In the second half of the year, the Post will detail its strategy for 2025–2028 for a successful start into the next phase of the Post of tomorrow. This way, the Post can consistently align itself with the changing needs of people and businesses in the country. Always with the goal of remaining financially independent and financing its postal public service without support from tax revenues, meaning from its own resources.
Access the half-year report here
Photo: © Swiss Post
