Liechtensteinische Post publishes sound result
The letter business of Liechtensteinische Post slumped significantly in 2020, as did payment transactions. By contrast, the parcels segment experienced strong growth. In order to further diversify sales, logistics services will be expanded.
Liechtensteinische Post is facing radical change in its traditional business areas. This can be gleaned from the Annual Report for 2020. Overall, the postal company has published a sound result.
A striking decline was registered in letter business, the main pillar of Liechtensteinische Post AG. Mail volumes decreased by 9 percent. “The decline is clearly much stronger than has been experienced in the downward trend of recent years,” it is highlighted in a press release. This is “unfortunately” not a temporary effect and will continue to have “far reaching consequences” for earnings performance in future.
The shift in payment transfers is even more striking. Counter transactions slumped by 13.5 percent. However, parcels business saw extraordinarily strong growth of 25.1 percent to 1.72 million Swiss francs. Following a particularly buoyant prior year, sales in the areas of stamps dropped sharply by 47.4 percent to 3.25 million francs. Various different projects have been launched to bring about the “urgently required” stabilization.
Logistics services will help achieve a diversification of sales, the company reports. The share of the overall result improved slightly to 12 percent, or 4.93 million francs. It is therefore becoming “an important pillar for the future”.
An equity ratio of 68.3 percent was reported, while positive cash flow of 1.69 million francs was posted. Earnings after taxes amounted to 2.45 million francs, so a “very solid” result according to Liechtensteinische Post AG. Consequently, a dividend of around 50 percent of earnings could be paid for the first time since 2012.Back to overview