Within four years, Swiss Post reduced its workforce by 8,547 to 47,368 employees, and in 2023 recorded a net profit of CHF 254 million on revenue of CHF 7.3 billion. Logistics suffered a decline (-4.6%). However, parcel volumes are expected to increase again with the rise of e-commerce.
Logistics services account for CHF 4.2 billion of Swiss Post's total revenue and contributed CHF 335 million to operating profit. Swiss Post CEO Roberto Cirillo stated at the presentation of the annual report that 2023 was characterized by inflation and the associated depressed consumer sentiment, declining letter and parcel volumes, and falling counter payments.
R.Cirillo
“We look back on a challenging year. At the same time, we have accomplished a great deal and further strengthened the foundation for the future. We have achieved important strategic milestones in all areas. Swiss Post is changing so that it can best meet the physical and digital needs of its customers, both today and in the future.” Price and efficiency measures, targeted acquisitions, and network opening have counteracted the declining volumes of letters and parcels as well as falling counter payments, but cannot yet fully compensate for them.
sector, logistics services Swiss Post anticipates significant long-term growth. According to statistics, customers are sending approximately 70 percent more parcels than they did ten years ago. To prepare for this growth, Swiss Post has, as previously reported, commissioned new sorting facilities – namely, the two regional parcel centers in Wallisellen (ZH) and Pratteln (BL), and a parcel sorting machine has been installed in Härkingen (SO).
Photos: Swiss Post
Thanks to the continuous development of its core business and its investments in freight and construction logistics, Swiss Post not only ensures the secure logistics of letters and parcels, but also transports printed materials, newspapers, goods, and merchandise, connecting international markets to Switzerland. According to management, efficiency measures implemented in administration at the beginning of 2023 and ongoing process optimization in operations led to a very strong result for the Logistics Services division in the fourth quarter. This significantly mitigated the decline in earnings in the logistics sector compared to 2022.
To counteract the challenges in its core business, Swiss Post is working on building the physical and digital core business of the future, explains Cirillo. "It is important that we move forward and consistently pursue the path we have chosen. (...) We want a strong Swiss Post, financed from its own resources and without burdening taxpayers.".
Annual Report 2023 available for download
