Swiss Post: coronavirus also weighs on interim result
In the period ending September 2020, Swiss Post generated Group profit of 136 million francs. That is 127 million francs less than the prior-year period. This interim result shows how the coronavirus crisis is also affecting Swiss Post.
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Operating profit (EBIT) was lower in the first three quarters of 2020, at 176 million francs, 195 million less than in 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 additionally 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.
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, he adds. “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,” emphasizes Glanzmann.
Since August, there have been signs of some stabilization. A certain recovery and a catch-up effect are becoming apparent, 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.
You can find further details on the effects and expectations from the third-quarter financial results in the press release.