Post Danmark Reports Operating Profit Decline
13 November 2009 - Press Release
Post Danmark reported an operating profit after tax of DKK 235 million in the first nine months of the year compared with DKK 726 million in the same period last year. Profit from operating activities decreased due to heavy volume declines mainly for letters and parcels. The profit performance has led Post Danmark to maintain the downward adjustment announced in connection with the presenta-tion of Interim Financial Statements for the First Half of 2009. Against this back-ground, the operating profit for the full year is expected to show a marked decline relative to 2008.
In the past twelve months, letter volumes declined by nine per cent while parcel volumes declined even more sharply. During the same period, the company said it has only been possible to cut expenses by 1.2 per cent, which far from compensated for the huge volume declines for letters and parcels. Post Danmark said it's expenses are in very large part linked to the maintenance of a reliable distribution network ensuring delivery on a day-to-day basis to households in all parts of the country. Even though it had initiated a wide-ranging rationalisation programme, this had not been enough to ensure a satisfactory operating profit.
The total after-tax profit for the period amounted to DKK 1,709 million compared with DKK 666 million in the same period last year. This profit increase was due exclusively to the sale of Post Danmark's ownership interest in the Belgian De Post - La Poste, which was completed in the third quarter.
"During these difficult economic times, we are pleased with the positive influence of the sale of our stake in De Post - La Poste on our profit performance. The sale generates non-recurring income but does not change the fact that we must adapt our company to the heavy volume declines for letters and parcels. Our company must deliver a much better operating profit in order to be able to meet the increased competition in a fully liberalised market" K. B. Pedersen explains.
In June, Post Danmark was merged with the Swedish Posten AB. The merger was completed by the establishment of a joint Swedish parent company, Posten Norden AB.
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