The drop in mail forces the Post to review its model

Its CEO, Philippe Wahl, speaks of a

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Whatever the term used, Le Groupe La Poste was hit hard in 2020 by the vertiginous drop in mail: volumes plummeted by 18.1%, whereas they were falling from 7% to 8% per year previously.

The health crisis has of course played a role, accentuating the digitization of communications.

Not to mention that at the start of the first confinement, La Poste no longer spent 6 days a week.

This drop in mail had an unfortunate consequence: for the first time in 2020, the operating profit of the mail-parcel branch fell into the red, at 1.1 billion euros.

The parcel boom was not enough to save the day.

Even if, in this area, the Post has not been unworthy and has taken advantage of the surge in e-commerce.

Already leader in France, Colissimo gained market share last year.

Its turnover increased by 20%.

Weakened in one of its main activities, the La Poste group generated a net profit of 2.1 billion euros in 2020 solely thanks to the merger with CNP Assurances.

Without this operation, which strengthened the financial center led by La Banque Postale, the group would have ended 2020 with a net loss of 1.8 billion euros.

Negotiate compensation with the State

For management, these results are a warning.

The strategic plan for 2030, which it unveiled on Thursday, certainly identifies growth drivers: the parcel again and again, and especially internationally (the express parcel subsidiary in France and internationally GeoPost has seen its turnover jump 22% in 2020 at constant scope);

financial services with the Banque Postale;

digital services, in particular with the Digiposte digital safe;

local services.

But management believes that the group will not be able to grow without an overhaul of the financial compensation linked to La Poste's public service missions: banking accessibility, land use planning, distribution of the press and universal postal service, notably with distribution 6 mail days a week throughout the country.

While until 2019, this universal service balanced itself with the package, Philippe Wahl believes that this will no longer be the case in the future and that compensation from the State is now necessary.

, insists the CEO.

Negotiations with the state, and with Brussels, will last a few more weeks.

Intense weeks.