Postnord (PN) Q2 2024 earnings summary

Executive summary

• Income improved for the third consecutive quarter, driven by ongoing improvement programs and focus on profitable parcel growth.

• Net sales for Q2 2024 were SEK 9,709 million, down 1% year-over-year, with mail volumes down 11% and parcel volumes down 1%.

• Operating income (EBIT) was SEK -463 million, impacted by a SEK 598 million impairment loss in Denmark; adjusted EBIT improved to SEK 205 million.

• Operations are being adapted to changing market conditions, especially in Denmark.

• Focus remains on profitable parcel growth and sustainability, targeting fossil-free operations by 2030.

Financial highlights

• Net sales for Q2 2024 were SEK 9,709 million, down 1% year-over-year; H1 net sales were SEK 19,209 million, down 3%.

• Operating income (EBIT) was SEK -463 million, an improvement from SEK -725 million in Q2 2023; adjusted EBIT reached SEK 205 million, up from SEK 135 million.

• Net profit for the period was SEK -549 million, compared to SEK -755 million in Q2 2023; EPS was SEK -0.27.

• Cash flow from operating activities increased to SEK 541 million from SEK 270 million year-over-year.

• Return on capital employed (ROCE) improved to -1.4% from -4.4% year-over-year.

Outlook and guidance

• E-commerce remains a long-term growth market; the company aims to strengthen its position as a leading Nordic parcels carrier.

• Ongoing cost leadership and improvement programs are expected to continue supporting profitability.

• Regulatory changes in Denmark and digitization trends may accelerate mail volume declines, requiring further adaptation.

• Ongoing adaptation to declining mail volumes, particularly in Denmark.