“We were not surprised by the result”
At 405 million francs, Swiss Post again generated a profit in 2018. This is despite the negative interest rate situation at PostFinance, the steady decline in letter mail and the turbulent year at PostBus. In an interview on the annual result, Alex Glanzmann, Head of Finance at Swiss Post, praises the company’s employees. But he also indicates where the challenges facing Swiss Post lie in the future.
A look at the figures clearly shows that in many units, Swiss Post performed very well in 2018. “I am very pleased about this because, with the exception of PostBus and PostFinance, all other units achieved better results than in the previous year,” says Alex Glanzmann, Head of Finance and Member of Executive Management at Swiss Post. However, he is not surprised that profits were down 122 million francs year-on-year.
Our employees have earned our thanks
As promised, PostBus has repaid all unlawfully received subsidies, and this is reflected in the financial result. PostFinance is repositioning itself, focusing on digital banking and confronting the low interest environment to the best of its ability. Swiss Post is also affected by a continuing decline in both letter mail and over-the-counter-transactions. But the Head of Finance remains optimistic: “With measures at PostalNetwork and PostMail, we are meeting these challenges successfully, and even improving the result.” Swiss Post has also responded quickly to the trends in online retailing, investing around 400 million francs annually, for example in new projects such as the three regional parcel centers in Vétroz, Untervaz and Cadenazzo. Despite the difficult business environment, the positive result is due in particular to the “very good operating performance of the units”. Glanzmann pays tribute to the huge commitment shown by Swiss Post’s employees last year.
Situation remains difficult
Swiss Post is meeting the challenges it faces with consistent measures in its core business and is continually opening up new growth areas. However, the Group result will continue to come under pressure in the future. Not only because of the operational challenges facing the Group units, but also with respect to the annual dividend paid to the Confederation. Glanzmann remains ambitious: “We want to continue to finance the universal service from our own resources.” It is crucial that Swiss Post continues to generate profits, because “that is what gives us sufficient entrepreneurial freedom for the future,” explains 49-year-old Glanzmann. For more on this topic, watch the video interview with Alex Glanzmann.
Despite the lower Group result, successful business areas impact significantly on Swiss Post’s annual result