Posti´s net sales drop by 6% in Q2

The net sales of the national postal and logistic services operator, Posti Group was 386.5 million euros in April-June period, which was 6.0% lower compared to the stipulated period of the previous year.

The net sales of Posti was EUR 411.3 million in the second quarter of 2022, said Posti in a release on Thursday.

Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) decreased to EUR 38.0 million euros or 9.8% of net sales.

Adjusted operating result decreased to EUR 5.3 million, representing 1.4% of net sales.

Operating result decreased to EUR 3.5 million, representing 0.9% of net sales.

High interest rates and inflation lowered consumer purchasing power, particularly in Sweden, which impacted eCommerce and Delivery Services and Fulfillment and Logistics Services volumes and net sales negatively.

In eCommerce and Delivery Services segment, the total parcel volume in Finland and the Baltic countries increased by 1%.

Despite the total parcel volume growth, the main product categories in the main market continued to decline due to the challenging market environment.

The number of addressed letters returned to a declining trend (decreased by 8%).

Exceptional amount of addressed letters sent by the public sector in Finland increased the volumes in Q1.

The share of mail items covered by the universal service obligation accounted for 2.3% of all Posti’s mail items delivered.

“In the second quarter, the lowered consumer demand led to declined net sales and results. However, I am pleased how the whole Posti team went the extra mile and quickly reacted and adjusted to the changing market conditions,” said Turkka Kuusisto, President and CEO of Posti.

Kuusisto said that inflation peaked and interest rates continued to rise during the first half and consumers’ purchasing power lowered and behavior changed, which impacted Posti’s volumes negatively.

“Group net sales decreased by 2.3% to EUR 784.1 million, whereas adjusted EBITDA increased to EUR 80.5 million in the first half. In the second quarter we continued to focus on advancing our operational efficiency. The Group’s net sales decreased by 6.0% to EUR 386.5 million and adjusted EBITDA decreased to EUR 38.0 million,” Kuusisto added.