CEO Review Q1/2025

7.5.2025

CEO Elisa Markula

"In the first quarter of 2025, we continued to successfully implement our strategy, and our profitability improved in all businesses. Our net sales grew by 3.9%. Excluding the impact of acquisitions, comparable net sales grew by 6.9%. The Group's comparable operating result improved clearly and was EUR 21.9 (-17.1) million. In the previous year, the business environment in the beginning of the year was particularly challenging. Severe winter conditions and exceptional track damage caused significant additional costs, and political labour disputes had a negative impact of almost EUR 20 million on the result at that time. The operating environment was favourable this year supporting our performance.

In the first quarter, domestic long-distance train travel continued to grow, especially in terms of leisure travel. The customer experience measured by the Net Promoter Score (NPS) was at an all-time high of 62 (32). Passengers have assessed the new train WiFi as an improvement and it is at a good level of 3.6/5. Due to the mild winter, there were exceptionally few traffic disruptions in the quarter. This supported the punctuality of long-distance trains, which was at an excellent level. In long-distance train traffic in Sweden, the track work that has begun on the Stockholm−Gothenburg route has a negative impact on VR Snabbtåg's travel volumes. 

VR City traffic's net sales decreased clearly as a result of the expired contract-based public transport agreements. City Traffic’s result remained unprofitable due to the weak profitability of old, long-term contracts. VR actively participates in regional tenders in the city traffic market, several of which are still ongoing this year, especially in Sweden. New contracts won last year will start in Sweden at the end of this year.

VR Logistics improved its result clearly compared to the previous year. In the comparison period, logistics volumes and results were significantly negatively affected by political strikes and difficult winter conditions. Improving operations also enhanced the profitability of logistics. VR sold its road logistics business at the turn of the year and is focusing on rail transport.

We are focusing increasingly on our core businesses, passenger and freight transport. At the same time, we are actively supporting the goals of the government programme to increase competition. One of the most concrete measures is to establish a rolling stock company for publicly supported and competitive contract-based public traffic, which will transfer VR’s current contract-based public traffic’s fleet to this rolling stock company, which is 100% owned by the state. VR has also put additional rolling stock up for sale to other industry players.

Thank you to all our employees for your excellent work – this is a good sign that we can continue on our common journey towards a sustainable future-proof VR! We would also like to thank our customers for their trust to our services.”