Postnord (PN) Q3 2024 earnings summary

Executive summary

• Profitability improved for the fourth consecutive quarter, driven by package growth, cost reductions, and price adjustments, despite a 5% revenue decline to SEK 8,570 million in Q3 2024.

• Package volumes grew 1% year-over-year, while mail volumes dropped between 14% and 18%, reflecting digitalization and regulatory changes.

• Ongoing improvement programs and investments in sustainability, including a fossil-free target by 2030 and joining the Climate Pledge.

• For the nine months, revenue fell 3% to SEK 27,779 million, with adjusted EBIT up to SEK 463 million from SEK 171 million.

• Focus remains on profitable parcel growth and adapting to lower mail volumes.

Financial highlights

• Net sales for Q3 2024 were SEK 8,570 million, down 5% like-for-like from SEK 9,149 million in Q3 2023.

• Operating income (EBIT) reached SEK 86 million, up from SEK -6 million in Q3 2023; adjusted EBIT was SEK 104 million.

• Net profit for Q3 was SEK 67 million, compared to a loss of SEK 38 million a year earlier; EPS was SEK 0.03.

• Cash flow from operating activities improved to SEK 1,142 million from SEK 504 million.

• Net debt including pensions and leases rose to SEK 4,368 million; net debt ratio at 41%.

Outlook and guidance

• Ongoing transformation focuses on e-commerce, efficiency, and cost leadership to offset declining mail volumes.

• Swedish mail business requires regulatory relief to remain self-financed and profitable amid rapid digitalization.

• Continued expansion of parcel delivery network and home delivery services to capture import volumes.

• Improvement programs are expected to continue yielding results, with a focus on adapting to lower mail volumes and driving parcel growth.