Postnord (PN) Q4 2024 earnings summary

Executive summary

• Earnings and profitability improved every quarter in 2024, driven by ongoing improvement programs, increased parcel volumes, and cost reductions, with a strong finish to the year.

• Q4 2024 saw a strong improvement in income, with parcel volumes up 6% and net sales at SEK 10,018 million, down 4% year-over-year in fixed currency for like-for-like units.

• Full-year 2024 net sales were SEK 37,797 million, a 3% decrease year-over-year; parcel volumes rose 1% while mail volumes fell 15%.

• Focus remained on profitable growth in parcels, while mail volumes continued to decline.

• The Board proposes no dividend for 2024.

Financial highlights

• Q4 2024 net sales were SEK 10,018 million, down 4% like-for-like from SEK 10,441 million in Q4 2023.

• Operating income (EBIT) rose to SEK 385 million from SEK 124 million year-over-year; adjusted EBIT reached SEK 498 million, up from SEK 328 million.

• Q4 net profit was SEK 306 million, compared to SEK 89 million in Q4 2023; full-year net income was SEK -89 million, improved from -664 million.

• Cash flow from operating activities increased to SEK 1,422 million from SEK 733 million; full-year cash flow was SEK 3,349 million (up from 2,033 million).

• Net debt ratio (excluding leases) improved to -35% from -20% year-over-year.

Outlook and guidance

• Ongoing improvement programs are expected to continue yielding results, with a continued focus on parcel growth and cost efficiency.

• The Nordic e-commerce market is expected to continue long-term growth, supporting parcel volume increases.

• Ongoing digitalization and regulatory changes will continue to pressure mail volumes, especially in Denmark and Sweden.

• Continued focus on cost efficiency, network expansion, and sustainability initiatives, including fossil-free operations by 2030.