Interview with Christian Levrat and Roberto Cirillo

“Swiss Post must stay in shape – also for the period after 2030.”

Swiss Post closes the 2024 financial year with a solid result. In this interview, Chairman of the Board of Directors Christian Levrat and current CEO Roberto Cirillo explain how the “Swiss Post of tomorrow” strategy has led to this success – and how Swiss Post intends to remain relevant for the people of Switzerland in the future.

The end of the 2024 financial year marks the end of the first four years of the “Swiss Post of tomorrow” strategy period – where does Swiss Post stand today compared to 2020?

Roberto Cirillo: Swiss Post today is not the Swiss Post it was four years ago. We have succeeded in reorientating the company and establishing a solid foundation for the future. Swiss Post is now on a sound financial footing, despite a difficult market environment and continuing negative trends in its traditional business with letters and cash inpayments.

We have laid the foundations for efficient logistics and trust-based digital services.

Roberto CirilloCEO

Was that not the case beforehand?

When we developed the strategy in 2019, Swiss Post as a system was in a very difficult position. Revenue and EBIT had been trending in the wrong direction for years, and Swiss Post was at risk of unsustainable decline. Important drivers of our historical success, such as letter volumes and over-the-counter transactions, were falling away, negative interest rates were relentless in revealing the limits of PostFinance’s restricted business model, and digitization and changing customer needs were demanding completely different postal services. If we had continued in the same vein, we would have been unable to finance our services from our own resources within just a few years. Our goal was therefore to fundamentally transform our business. Because Swiss Post is an integrated system, we were forced to work on several levels and in several dimensions at the same time. We pulled out all the stops to break these trends: by merging the letter and parcel units, we created new economies of scale. We grew organically and made acquisitions in areas where demand is growing – both physically, for example in goods logistics, and digitally. We adjusted prices and structured the company better and more efficiently. And we invested very heavily to provide our customers with the infrastructure they need and guarantee the high quality they expect. Our goal was and is to ensure provision of the universal service from our own resources in the long term.

How important is 2024 in this context?

In the first few years of my term of office, we faced strong headwinds. The global pandemic, the geopolitical situation, and also inflation and supply shortages were challenging for us. And because of the regulatory restrictions in place, we were not always able to react quickly enough. You can see this for example in the fluctuating results between the years 2020 and 2024. But the negative trends were quickly broken. In 2024, we achieved outstanding performance, particularly in our core logistics activities. This proves without doubt that given the necessary flexibility and freedom, Swiss Post can remain healthy.

What factors led to the positive result?

It was a combination of various measures implemented as part of our strategy coming to fruition simultaneously in 2024. We benefited from better processes, automation and better utilization of resources. The price adjustments worked. With the internal efficiency measures, we optimized our structures and processes. And the acquisitions brought new expertise, economies of scale and contribution margins.

We want to find useful solutions in the long term, rather than thinking in terms of conflicting short-term goals.

Christian LevratChairman of the Board of Directors

How the strategy is implemented is often a matter of public debate, with strong feelings in particular around discussion of the future of the branches. What is your take on these issues, Mr Levrat?

Christian Levrat: Public debate is as much a part of Swiss Post as Swiss Post is a part of Switzerland. The branches in particular show how quickly customer requirements are changing: letter volumes continue to decline and payment habits have also changed radically. We are responding to these changes by transforming our branch network, developing new products and services and opening our branches up to other providers and public authorities. This is always done in close dialogue with the municipalities. Satisfaction with our “branch with partner” format, for example, is very high.

At the same time, there are also questions surrounding investments. Does Swiss Post want to grow at any cost?

We are essentially pursuing a growth strategy, but in a very specific way, for example with focused investment in our core areas of logistics and communication in line with changing customer needs. In recent years, we have built up a range of new infrastructures and competencies.

Can you give some examples?

In goods logistics, we are simplifying the movement of goods for our customers by acquiring logistics companies in neighbouring countries. We have also invested in the area of cybersecurity. After all, the trustworthy transfer of information – absolutely secure and confidential in accordance with the principle of postal secrecy – has always been an important part of our DNA. With digitization, we want to guarantee our customers this same level of security.

The environment remains challenging and expectations of Swiss Post are high on all sides. How is Swiss Post as a Group positioned for the coming years?

Christian Levrat: We are pursuing our strategy consistently: overall, as I said, we will continue to evolve in the coming years in line with changing customer needs. We aim to grow where demand for specific services or products is growing, and we will adapt where demand is falling. This will make us fit for the future. We aim to ensure that our customers can still depend on a strong, sustainable public service in future – in the physical and digital worlds. Looking ahead to 2030, we also expect the Confederation to set the course for the future, determining which of our services will continue to be provided under the universal service and to what extent.

In the new strategy period, which began on 1 January 2025, the Group will be managed with seven ambitions. One of these is “customer centricity”. Does Swiss Post have ground to make up here?

Roberto Cirillo: We know our business customers in particular very well. We work closely together with them and understand their business models and needs. This helps us to develop products and services that meet their requirements and add everyday value. But in times of rapid change and as the process of digitization continues, it is also essential to focus more strongly on our relationships with our private customers and SMEs, who should have access to all relevant services and benefit from more comprehensive support. We need to improve our understanding of these customers and their requirements and offer appropriate services in response.

Mr Cirillo, you are stepping down from your role as CEO at the end of March. What do you wish Swiss Post for the future?

In the past few years, we have created a solid and future-proof Swiss Post. Our finances are in balance and the quality of our services is very high. This transformation is backed by the new, competent management in place at multiple levels of the company that is responsible for it. As I said, Swiss Post today is definitively not the company it was four years ago – the Swiss Post of tomorrow is already a reality. For me, this is the ideal moment to go. I’m leaving behind a healthy Swiss Post that has a clear direction for the future. I’m incredibly proud of what we have achieved together. I would like to express my sincere thanks to the Federal Council, the Board of Directors and Executive Management, and above all to the staff who every day personify our world-leading postal service. For the future, I hope that Swiss Post continues to believe in itself and the indispensable role it plays in Switzerland’s cohesion and progress, that it holds to the course it has chosen and evolves consistently in line with its strategy, that it acts culturally as “one Swiss Post”, and above all, that it gets the regulatory framework it needs to further develop its business.

Mr Levrat, what kind of Swiss Post would you like to see in four years’ time?

Christian Levrat: I would like to see a Swiss Post that continues to play a relevant role in the everyday lives of people in Switzerland beyond 2030. A modern, innovative company that is close to its customers and offers modern services. Services in line with our core business, which meet a real need, are easy to use, and where data is absolutely secure.