Norway Post increased profits and revenues in the first half of 2008 mainly due to acquisitions andan increase in the volume of logistics products.
The group increased its total operating revenues for the first six months of the year by 7.3%to NOK 14.4 billion (€1.8 billion). Earnings before taxes for the first six months were NOK 311million (€39 million) compared to NOK 269 million (€33.8 million) for the same period last year.
In H1, 2008, the volume of international parcels grew by 20.5% compared to the correspondingperiod in 2007. The largest growth is in parcels from USA which increased by 130% in the first halfof the year, but imports from other countries are also increasing. Norwegians ordered 10% moreparcels from European distributors and shops.
To strengthen its position in the online shopping segment, Norway Post Logistics hasinstalled 27 parcel machines in Norway and Sweden, and a further 13 are under installation,providing the possibility of goods being delivered to these parcel machines at express speed.
In the Post segment, Norway Post faced profitability challenges such as greater competition,lower economic growth and electronic substitutes for letters, combined with higher personnel andtransport costs, which had a negative effect on developments. The company expects this trend tocontinue in the years to come and will implement initiatives starting in September to strengthenthe profitability of its Post segment.
“We have to adapt to the reality and market around us. This is why we are workingpurposefully to identify new areas that can provide income and to make our production work moreeffective and industrialised so that we have as efficient a value chain as possible,” commentedNorway Post CEO Dag Mejdell.
