While the once-reliable tradition of sending letters through the mail is waning, the national postal service is experiencing an uptick in parcel deliveries.
In its latest report, Posti, Finland’s national mail company, announced a notable increase in profitability during the latter part of last year, despite a decline in overall turnover. Specifically, the company’s adjusted earnings before interest and taxes (EBIT) rose to 30 million euros in the fourth quarter, a marked improvement from nearly 22 million euros during the same quarter in 2022. However, this success came amid a 3.3 percent drop in turnover for the final quarter, totaling 390 million euros. For the entire year, Posti saw a downturn of 4.8 percent, bringing the annual turnover down to approximately 1.45 billion euros.
Following its stock exchange debut last autumn, Posti’s board proposed a dividend payout of 0.84 euros per share, to be distributed in two installments. In a statement released on Friday, CEO Antti Jääskeläinen hailed the last quarter as a significant success for the company. He noted, “Our relative profitability—adjusted EBITDA and adjusted operating profit margin—reached their highest levels in over a decade in the last quarter of the year.”
Reflecting on their holiday operations, Posti shared that it successfully delivered 7.8 million packages alongside 8.9 million holiday cards during the festive season.
### Declining Letter Deliveries
Yet, this overall revenue decline is largely attributed to a staggering 20 percent drop in letter deliveries. Conversely, the demand for parcels surged by over 11 percent, a trend driven by a growing preference for consumer-to-consumer sales of second-hand items.
With society increasingly shifting towards digital communication, Jääskeläinen predicts that the decline in letter deliveries will accelerate. This expectation is echoed in their outlook for the first quarter of the year. “Postal volumes are expected to continue declining due to digitalization,” he remarked. To adapt, Posti is enhancing its delivery models for physical mail while simultaneously providing digital mail solutions to assist customers in their transition to online services.
Looking ahead, the landscape will be further impacted by upcoming legislation set to take effect in 2026, which will prioritize the digital transmission of official government correspondence, inevitably reducing the volume of addressed letters.
As Posti navigates these shifts, the logistics sector faces ongoing challenges this year. The company pointed out that tepid consumer confidence and economic uncertainties are hindering growth across trade and industry.