In the period to the end of September 2020, Swiss Post generated Group profit of 136 million francs. That is 127 million francs less than the prior-year period. Operating profit (EBIT) in the first three quarters was 176 million francs, 195 million less than the same period in 2019. Operating income is also down. At 5’113 million francs, it is 187 million francs lower than in the previous year.

The consequences of the coronavirus pandemic are also weighing on Swiss Post’s result. The significantly lower third-quarter result reflects the ongoing pressure on relevant value drivers at Swiss Post – letter volumes, over-the-counter transactions and interest rates. In the letter business, the volume of addressed letters fell by 6.8 percent compared to 2019, in payment transactions, there were 14.9 percent fewer over-the-counter payments, and PostFinance’s interest income was down 25 million francs year-on-year. While these three key figures have been declining for some time now, the negative trend was to some extent further exacerbated by the coronavirus crisis. At the same time, growing parcel volumes cannot offset the negative effects in the other business units (see box).

Some recovery beginning to show

“The final annual result depends on how the pandemic continues to develop and on the festive season, which is very important for our business,” says Alex Glanzmann, Head of Finance at Swiss Post. The forecasts are reviewed on a monthly basis and could change quickly, depending on the evolution of the Covid-19 situation, adds Swiss Post’s CFO, stressing that: “Thanks to the good basis that Swiss Post has established in recent years, we can cope with the current financial challenges from our own efforts.” Since August, there have also been signs of some stabilization. A certain recovery and a catch-up effect are beginning to show, particularly in letter volumes. For example, the volume of promotional mailings or of priority letters has increased again in individual months in the past quarter.

At the moment, Swiss Post assumes that the impact on Swiss Post’s finances by the end of the year will be less severe than was feared at the end of the second quarter. Overall however, Swiss Post expects a negative impact on its result amounting to a figure in the triple-digit millions, with the biggest part played by market effects resulting from the coronavirus pandemic. Examples of this include the accelerated decline in letter volumes at PostMail, as noted above, and the deficit in income from transport services at PostBus. The smaller part of the negative impact on EBIT is due to one-off effects of the coronavirus. These include the thank-you bonus for employees in business operations (10.5 million francs), the procurement of protective equipment such as disinfectant, Plexiglas screens and face masks, and the employment of temporary staff (21 million francs).

Solidarity shown and the economy supported

But it is not only Swiss Post that is suffering the effects of the coronavirus, it is the Swiss economy as a whole. Swiss Post has therefore taken action in solidarity, to provide additional support for or to relieve the pressure on the economy. For example, Swiss Post has paid its pending invoices earlier than the required payment deadlines. This means that suppliers have received urgently needed money as quickly as possible, enabling them to invest and use it for their financial obligations. Swiss Post has also reduced rents for tenants severely affected by lockdown, or refrained from collecting it entirely. PostFinance for its part participated in the Federal Council’s assistance programme and granted its SME customers bridging loans. A total of 17’350 credit limits with a volume of more than 850 million francs were granted. And last but not least, Swiss Post will not make any general price adjustments to the mass parcel and letter business next year. Any changes will be delayed until the following years. As Swiss Post’s Head of Finance Alex Glanzmann emphasizes: “With all of the measures adopted, Swiss Post has fulfilled its responsibility as a reliable partner of the Swiss economy.” The “COVID-19 Solidarity” stamp also reflects Swiss Post’s commitment to social cohesion. The proceeds, around 2.7 million francs to date, will go to Swiss Solidarity and the Swiss Red Cross.

 

Group key figures

Key figures	Unit	Full year 2019	30.09.2019	30.09.2020
Operating income	CHF million	7’168 [1]	5’300 [1]	5’113
Operating profit (EBIT) [2]	CHF million	450	371	176
Group profit	CHF million	255	263	136
Total assetso	CHF million	132’544	123’547 [1]	142’833
Equity	CHF million	6’834	7’014	6’753
Investments	CHF million	443 [1]	282 [1]	233
Headcount at Swiss Post Group	FTEs [3]	39’670	39’523	38’966

 

¹ ↑ The figures have been adjusted. In the third quarter of 2020, Swiss Post made an adjustment to the disclosure of cash flow from operating activities without affecting profit or loss.
² ↑ The operating profit corresponds to the result before net non-operating financial income and taxes (EBIT).
³ ↑ FTEs = full-time equivalents. Average headcount expressed in terms of full-time equivalents, excluding trainees.

 

PostFinance Ltd key figures

Key figures	Unit	Full year 2019	30.09.2019	30.09.2020
Number of customers	thousands	2’738	2’764	2’697
Customer assets	CHF million	119’660	118’006	122’101
Customer assets in partner solutions	CHF million	12’808	12’106	13’594
Mortgages [1]	CHF million	5’965	5’944	6’001
Development of customer assets	CHF million	246	–1’407	2’441
Headcount	FTEs [2]	3’243	3’238	3’251

 

¹ ↑ In cooperation with partner banks.
² ↑ FTEs = full-time equivalents. Average headcount expressed in terms of full-time equivalents. Headcount at PostFinance parent company.

Selected key figures per segment

30.09.2020	Segment	Operating income (CHF million)	Operating profit (CHF million) [1]
Communication market	PostMail	1’819	181
Communication market	Swiss Post Solutions	397	16
Communication market	PostalNetwork	448	–106
Logistics market	PostLogistics	1’371	143
Financial services market	PostFinance	1’160	140
Passenger transport market	PostBus	603	–41

 

30.09.2019	Segment	Operating income (CHF million)	Operating profit (CHF million) [1]
Communication market	PostMail	1’912	257
Communication market	Swiss Post Solutions	445	25
Communication market	PostalNetwork	503	–103
Logistics market	PostLogistics	1’244 [2]	96
Financial services market	PostFinance	1’245	207
Passenger transport market	PostBus	632	–8

 

¹ ↑ The operating profit corresponds to the result before net non-operating financial income and taxes (EBIT).
² ↑ The figures have been adjusted. In the third quarter of 2020, Swiss Post made an adjustment to the disclosure of cash flow from operating activities without affecting profit or loss.

 

Informazion:

Erich Goetschi, Swiss Post Media Unit, 058 341 37 42, presse@swisspost.ch