Interview
“We’ve achieved a great deal despite strong headwinds.”
CFO Alex Glanzmann answers questions on the 2023 results, challenges and the role of efficiency and pricing measures in strategy implementation. He explains how Swiss Post is investing and why Swiss Post customers will have two private letter boxes in future.
Interview with Alex Glanzmann
Head of Finance, Member of Executive Management
Alex Glanzmann, what’s your view on the 2023 results?
Fewer letters and parcels and the effects of inflation were the most important factors last year. With operating profit coming in at 323 million francs and profit at 254 million, the 2023 financial results are in line with our expectations. Operating income rose by 420 million francs to 7,279 million francs, mainly due to higher interest-related income at PostFinance. The additional income from strategic acquisitions only partially offset the decline in income due to lower volumes in the core business. Swiss Post’s equity position is solid. Despite strong headwinds, we’ve achieved a great deal with our strategy and strengthened our foundations for the future.
Did you expect to face so many challenges?
Yes, the situation was apparent at the start of the year. Persistently low consumer confidence resulted in fewer goods being ordered and, in turn, 4.6 percent fewer parcels being sent. Meanwhile, letter volumes fell by 5.6 percent. However, the letter business is still making a significant contribution to the result. At –18.4 percent, the decline in over-the-counter payment transactions has become more pronounced. That’s why we’re transforming our business by consistently aligning it with changing customer requirements.
What role do efficiency and pricing measures play in the implementation of the strategy?
Greater efficiency and higher prices are key levers in our strategy. We focus firstly on our own costs, such as office space, IT systems and the administration of the Group. In the current extremely challenging environment, we’ve raised various letter and parcel prices in agreement with the price regulator. I fully appreciate that price increases put extra strain on people and companies. However, Swiss Post generates around 88 percent of its income on the free market. We’re implementing efficiency and pricing measures to remain competitive and to continue providing our customers with the best possible service in future.
Does the result reflect the implementation of the strategy?
We’ve made slightly slower progress than planned. Inflation and the volatile, difficult economic situation have held back development. In addition, we evaluate each acquisition carefully: there are not that many companies and potential partners that are a good fit for Swiss Post and its strategy. The political and regulatory environment is also demanding in the area of digital services for public authorities and the healthcare sector.
Does Swiss Post take customers into account when making investments?
Every single investment is made with customer requirements in mind. In 2023, 605 million francs of investment benefited the Swiss public and economy. With around four-fifths of investment, we have upgraded and expanded our infrastructure – including the electrification of our vehicle fleet. We invested around one-fifth in digital solutions.
How do you see the future of Swiss Post?
We’re constantly expanding our services in areas where customer requirements are growing. And wherever demand disappears or changes, Swiss Post removes or updates its services. I can assure you that the yellow letter boxes are here to stay. Our customers will actually have two private letter boxes in future – one at the doorstep and the other in their pocket on their smartphone. We’re setting up the physical and digital core business of tomorrow, up to 2030 and beyond. We’re pursuing our path consistently. Swiss Post can only be successful in the long term if it is dynamic and continues to evolve.