Czech Post lost CZK 2 billion last year, but aims to be profitable by 2028

Czech Post has halted property sales, including the planned sale of Prague’s main post office on Jindřišská Street, as new management sets out a turnaround plan focused on keeping branches and finding new business.

The state-owned company intends to retain its network of nearly 3,000 locations, including approximately 1,200 partner-operated branches. Some could move to shopping centers or retail parks, while selected offices would gain self-service areas and additional services.

CEO Richard Hodul announced the strategy Thursday after reporting a loss of approximately CZK 2 billion for 2025. He expects further losses next year, followed by a gradual return to profit in 2028, a timetable analysts described as ambitious.

Hodul said staff reductions and property sales alone could not resolve the company’s long-term problems. Instead, Czech Post wants to change both its internal operations and what it offers customers.

The company has suspended property disposals and would in future sell only buildings it cannot otherwise put to productive use, he said.

Its parcel division, Balíkovna, will remain part of the business, reversing the direction considered by previous management. Plans include coordinating parcel and postal operations more closely and sharing capacity.

For customers, the most visible changes would be at branches. A new format would provide clearer layouts, areas for advice and assistance, and—in some locations—24-hour access to selected self-service functions.

The first redesigned branch is planned for Děčín at the end of the first quarter of 2027. The concept is intended for selected core branches, rather than the entire network.

Czech Post also wants to expand its role as a contact point for government services and introduce additional financial and banking services. Smaller communities could see branches selling goods that residents currently travel elsewhere to buy.

Management says the transformation could improve financial performance by CZK 5 billion to CZK 6 billion, combining approximately CZK 4 billion from stabilizing existing operations with CZK 1 billion to CZK 2 billion from new services.

The challenges are substantial. Hodul said parcel operations lost CZK 2.5 billion last year, while volumes in basic postal services have fallen 57 percent over five years.

He also said the state had left CZK 6.1 billion in losses from providing basic services uncompensated over the past decade.

XTB analyst Tomáš Maxa expressed skepticism about the 2028 profit target, citing intense competition and pressure on prices and margins.

Purple Trading analyst Petr Lajsek said the business must find new revenue and stop parcel losses. Additional administrative, digital and financial services could help, he said, provided customers want them and they can be delivered efficiently.

Crowe CEO Ivana Bracuzká emphasized the need to separate commercial operations from public-service obligations and fund the latter adequately.

Czech Post has been loss-making since 2018. It employs approximately 16,900 people, 44 percent fewer than in 2016, and delivered 52 million parcels and 233 million letters last year.