The structural transformation in letter mail business continues: as conventional letter mail volumes containing documents continue to decline, volumes of goods shipments in the mail and parcel network are growing. The Dialogue Marketing business unit underwent negative development, with the advertising spend for physical mail declining compared with the previous year due to inflation, reluctance to buy and customer insolvencies. In the German parcel market, the war in Ukraine and the increased cost of living dampened the mood in online shopping and caused parcel volumes to stagnate.
Post & Parcel Germany: ongoing structural change shapes business performance
Revenue in the Post & Parcel Germany division amounted to €16,892 million in the year under review and slightly exceeded the prior-year figure by 0.7%. The main reasons for this development were the higher prices for business customers starting in the second half of the year and increased volumes in national and international business with goods shipments. This was countered by a volume decline in national and international postal business caused by sustained structural change in mail and communication business as well as declining sales of advertising mail. Furthermore, decisions to discontinue sales territories for the EINKAUFAKTUELL product in 2023 and the overall discontinuation in 2024 had a negative impact on sales in the Dialogue Marketing segment. Parcel Germany performed well, contrary to the general market trend. Revenue in the Post & Parcel Germany division for the fourth quarter of 2023 was up by 2.5% versus the prior year.
EBIT in the Post & Parcel Germany division in 2023 amounted to €870 million and was below of the prior-year figure by 31.5%. With revenue above the prior year especially in the parcel business, this was driven by higher material costs brought on by inflation and pressure from collective bargaining agreements. The costs also include €30 million in expenses for an early-retirement program established in the fourth quarter of 2023. Return on sales in the reporting period was 5.2%. EBIT in the Post & Parcel Germany division amounted to €402 million in the fourth quarter of 2023 and was thus 4.7% above the prior-year period. Return on sales in the quarter was 8.5%.
