PostNL reports decline in mail volume, faces financial losses

PostNL is facing mounting challenges, with the mail division of the company reporting a decrease in the number of Christmas cards sent during the busy month of December. This drop in volume, along with other financial setbacks, has led to an expected loss for the mail division in 2024, the company announced.

PostNL described the financial results for its mail division in the final quarter of 2024 as “insufficient.” The reduction in Christmas card mailings was particularly troubling, as December is typically the peak month for postal deliveries. Additionally, the company saw an increase in less time-sensitive mail, which costs less to send but also brings in less revenue.

Further compounding the financial strain, PostNL’s labor costs increased due to staff shortages and higher sickness rates. "As a result, the December earnings were barely sufficient to offset the losses from the rest of the year," PostNL stated. The company's mail division’s profits for the entirety of 2024 were down by over 30 million euros compared to the previous year.

While PostNL’s parcel delivery sector showed growth, with a 10.5 percent increase in volume, there are still concerns surrounding this area as well. The company had initially expected even greater growth in parcels. Moreover, larger customers are demanding more discounts, further squeezing margins.

The company’s update on the last three months of the year was released one month before PostNL is set to publish its full annual financial results. In light of the current situation, PostNL has reiterated its call for changes to the postal law. The company argues that the current requirement to deliver mail within 24 hours is no longer viable, especially as people send less mail. "The business model is no longer sustainable," PostNL stated.