Swiss Post generated Group profit of 255 million francs in 2019, a decline of 149 million francs compared to 2018. At 450 million francs, operating profit (EBIT) was 55 million francs lower,
down 11 percent year-on-year. These results are unsurprising as Swiss Post continues to operate in a challenging environment.
Successful market development and efficiency measures in the individual business units ensured that Swiss Post’s result declined less sharply than the deterioration in the operating framework. The 11 percent fall in operating profit reflects the major challenges facing Swiss Post, decreasing from 505 million francs in the previous year to 450 million. Thanks to the tireless commitment of the company’s 56,000 or so employees, many units of Swiss Post recorded positive results despite the challenging operating environment. They also maintained the delivery services at a very high level, which meant that Swiss Post exceeded the Confederation’s targets again in 2019.
The low interest rate environment, the decline in letter volumes and strong growth in parcels are the main challenges in the core markets. This has led to the continued decline in results over recent years. Swiss Post will require a sufficiently strong financial basis to manage its transformation over the next few years. “Swiss Post aims to remain a robust, competitive and non-subsidized enterprise to continue financing the universal service from its own resources,” says Alex Glanzmann, Swiss Post CFO. “When I look at the development of the financial results and also see how Swiss Post’s key figures are changing, then it’s obvious that action is needed,” adds Glanzmann.