Norway Post has announced higher revenues for 2007 thanks to logistics expansion, improved qualityand strengthened positions in Norway and the Nordic region. On the other hand the group’s
profitability declined due to personnel and transport costs, additional resources to improvedelivery quality, and costs related to the expansion of CityMail.For 2007, the postal operator’s revenue grew by 15.7% to NOK 27.4 billion (EUR 3.44 billion).Turnover from business outside Norway increased by NOK 2.1 billion (EUR 265 million), or 50% over2006, and comprised 22.8% of the Group’s revenue in 2007.
The Logistics business, covering express, parcels and freight transport, accounted for 45% ofgroup revenues in 2007. Revenue grew by 11.4% per cent to NOK 12 321 billion, mainly due toacquisitions, and profits rose to NOK 713 million from NOK 635 million in 2006 despite highpersonnel and transport costs.
Norway Post’s group earnings before taxes dropped to NOK 949 million (EUR 119 million),compared with NOK 1,200 million (EUR 151 million) in 2006. Earnings before interest and taxes(EBIT) in 2007 were NOK 1,080 million (EUR 136 million), compared with NOK 1,313 million (EUR 165million) in 2006. The EBIT margin fell by 1.6 percentage points to 3.9% in 2007.
Dag Mejdell, CEO Norway Post, said that he is not satisfied that earnings decreased in 2007,and measures have been initiated to strengthen future profitability. “The initiatives that havebeen carried out this year to improve delivery quality have been beneficial for our customers, buthave contributed to lower profitability for the Group”, he commented.
Norway Post implemented extensive quality improvement initiatives last year to improvedelivery quality for letters and packages. Thanks to these measures the company expectsincreasingly positive results for 2008.
