La Poste saw its profit fall sharply over nine months

La Poste saw its profit fall sharply over nine months
La Poste saw its profit fall sharply over nine months

The coronavirus pandemic weighed heavily on the result of the Post (archives). KEYSTONE / GAETAN BALLY sda-ats

This content was published on November 26, 2020 – 14:31

November 26, 2020 – 2:31 PM

(Keystone-ATS)

La Poste posted a consolidated profit of 136 million francs in the first nine months of the year, down 127 million from the previous year. The coronavirus pandemic weighed heavily on the result, the yellow giant said on Thursday.

The operating result (EBIT) for the first three quarters amounted to 176 million francs, 195 million less than in the same period of the previous year. Operating income was also down: amounting to 5113 million francs, they fell by 187 million over one year.

The sharp decline in earnings for the first three quarters reflects the persistent pressure exerted on important factors that generate La Poste’s value, such as letter volume, counter transactions and interest transactions, notes the yellow giant .

Compared with 2019, the volume of letters sent decreased by 6.8%, the number of counter payments by 14.9% and the interest income earned by PostFinance by CHF 25 million. These three indicators were already in decline before the coronavirus crisis, but it has contributed to worsening the situation, specifies La Poste.

The marked increase in the number of packages transported (21.5% more than in 2019) did not make it possible to offset the decreases in other sectors of activity. The strong pressure on prices and the increase in volumes are the reason, writes La Poste.

Shy recovery

A slight stabilization has nevertheless been felt since August. The impact of the pandemic on La Poste’s finances at the end of the financial year could therefore be less significant than expected.

The yellow giant nevertheless expects the decline in results to show, in millions of francs, a three-figure amount. At this stage, the result of fiscal year 2020 will largely depend on the future evolution of the pandemic and holiday traffic, he says.

Reduced rents

La Poste also claims to have taken measures to support the economy during the crisis. In particular, it reduced the rents of some of its tenants affected by the containment measures.

Next year, it will refrain from any general adjustment of the prices of its consumer products in the letter and parcel sectors. These tariff adjustments will be postponed to the following years.

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