Swiss Post improved profits and margins in the first quarter of 2015 thanks to solid results in all four business areas but warned today that it continues to face an increasingly challenging market environment.
In the first three months of 2015, Swiss Post made a group profit of CHF 225 million, which was 13.1% up on the previous year’s figure of CHF 199 million. This was principally due to higher operating income from financial services.
Operating profit improved by 15.4% to CHF 292 million while revenue remained stable at CHF 2,125 million. As a result, the profit margin rose to 13.7% from 11.8% in the first quarter of last year.
PostFinance, which operates in the financial services market, achieved an operating profit of CHF 172 million in the first three months of 2015 compared to the previous year’s CHF 127 million. The increase of CHF 45 million is mainly due to reversals of impairment (reversals of portfolio impairment charges) on financial assets, Swiss Post explained. Operating income increased to CHF 592 million from last year’s CHF 568 million.
In the communication market, the operating profit dropped slightly to CHF 83 million from CHF 88 million last year. This slight drop was primarily the result of the continuing decline in income at PostMail and Post Offices & Sales caused by lower volumes. The number of addressed letters fell by 1.1% while the number of unaddressed items was up 2.5%. The reduction in operating income to CHF 1,185 million could not be fully offset by cost optimisation.
In the logistics market, PostLogistics recorded an operating profit of CHF 31 million, on a par with the previous year’s level. Parcel volumes were up 2.2% on slightly lower revenues of CHF 379 million.
In the passenger transport market, the operating profit generated by PostBus remained unchanged year-on-year at CHF 13 million. The rise in transport revenue and additional compensation payments were offset by higher operating expenses.
