Czech Post significantly improved its financial performance last year

The Czech Post Group, which also includes ČP Security, reported a loss of CZK 744 million in 2023. Czech Post itself reported a loss of CZK 756 million. In 2022, Česká pošta's loss reached CZK 1.751 billion, and the plan for 2023 originally anticipated a loss of CZK 1.490 billion. Compared to 2022, the pre-tax financial result improved by CZK 995 million.

Operating revenues, including CNUS and asset sales, increased from CZK 18.866 billion to CZK 19.037 billion (+0.9%), while operating costs excluding depreciation fell from CZK 19.750 billion to CZK 19.114 billion (-3.2%). Financial operations also developed positively, with a year-on-year improvement of CZK 199 million.

Revenues from the sale of services increased by CZK 694 million (+4.4%) year-on-year. Revenues from data boxes increased significantly (+CZK 322 million), as the upgrade of the technical infrastructure of the data box information system led to an increase in payments for the operation of this system to compensate for the growth in related costs.

Revenues from postal operations also increased significantly (+CZK 229 million). Revenues from domestic letter mail (+CZK 359 million) contributed significantly to this growth. The upward trend was also maintained in cash services (+CZK 17 million), parcel delivery (+CZK 13 million), and customs declaration services (+CZK 11 million).

On the contrary, there was a decline in revenues from domestic parcels (-CZK 112 million). Although the number of parcels transported increased by 5.7% last year, the share of cheaper parcels (to parcel shops, e-commerce from China) also increased.

Revenues from international outgoing shipments (-CZK 79 million) and the delivery of information and promotional materials (-CZK 38 million) were also lower year-on-year. Revenues from procurement activities increased by CZK 128 million year-on-year, mainly due to the sale of ČSOB Group financial products (+CZK 103 million). Revenues from the operation of contact points for the sale of ČEZ services also grew (+CZK 58 million).

The decline in operating costs is primarily due to savings in personnel costs (-CZK 672 million) thanks to a reduction in the number of permanent employees by 2,530 full-time positions (i.e., by 10.8%). On the other hand, the increase in tariff wages from April 2023 had the opposite effect on personnel costs. The average wage thus increased by 5.8%.

There was also a year-on-year decrease in material consumption (-CZK 202 million). The main reason for this was a decrease in fuel costs (-CZK 144 million), mainly due to lower prices, which was partially offset by the costs of outsourcing freight transport. Conversely, energy costs increased (+CZK 109 million) due to rising prices.

We are heading towards a balanced financial result and the completion of the transformation preparations

The positive impact of the stabilization measures will also be reflected in this year's financial results. The ongoing sale of unnecessary real estate will also have a positive impact. Česká pošta's financial plan for 2024 currently anticipates a slight decline in revenues, a further reduction in operating costs, and a resulting loss of only CZK 130 million, excluding the impact of activities we plan to implement if we obtain transformation financing. The costs already take into account a 10% across-the-board wage increase, which will take effect in September this year, as well as the costs of the ongoing renewal of the vehicle fleet.

The essence of the transformation is the separation of public postal services under the Czech Post brand and commercial logistics services under the Balíkovna brand. The aim of the transformation is to stabilize Česká pošta's finances and develop its services in the long term as a point of contact between citizens and the state. To this end, Česká pošta will use its nationwide network of 2,900 branches and over 4,000 delivery staff in the field.

“I would like to thank all our colleagues for the significant improvement in our financial performance. Our entire team is working hard to fulfill the tasks of the transformation plan and prepare Česká pošta for 2025. The separation of public and commercial services will create a transparent environment in which the state will always know exactly what services it is purchasing from Česká pošta for its citizens and how effective they are," explains Miroslav Štěpán, CEO of Česká pošta, explaining the purpose of the transformation.

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