Australia Post reports $197m half-year profit
On the same day that its Managing Director and Group CEO Ahmed Fahour announced his resignation, Australia Post has reported a profit before tax of $197m for the six months ended 31 December 2016. According to Australia Post, the “strong” half-year result benefitted from “solid” parcels growth, with domestic parcel volumes up 5.7%, and overall EBIT growth of 15.6%, as well as continued benefits from business efficiency programs.
Group revenue increased by 8% year-on-year to $3.52bn.
Fahour – who is set to leave his post in July – said the result showed that Australia Post’s “transformation to a parcels and ecommerce-centric business [is] taking hold”.
“Today over 70% of our revenue and 100% of our profit is derived from commercial activities in parcels and ecommerce,” said Fahour.
“This is one of the strongest first half results in recent history and it demonstrates that we are on the right path to ensuring the future of Australia Post for our people, the community and our important stakeholders.
“We are delivering more parcels than ever before, with domestic parcel volumes up 5% in the first half, market share increasing and at the same time we’re trialling new delivery innovations like evening and weekend deliveries to give our customers an even better experience.
“On top of the investment in new parcel sorting machines last year, in the past six months we have installed new automated sorting machines at our major letter facilities and launched a new air freight domestic parcels network.
“We are also responding to global competitors entering the local market by investing in the future. Last year we made a strategic investment in global parcels/ecommerce giant Aramex and we are already reaping rewards in growing our inbound and outbound parcel volumes.”
Letter volumes declined a further 11% in the first six months, but Australia Post said that the reforms that it introduced to the postal sector last year are taking effect, with “cumulative losses in the letters business stabilising”.
“Through the important postal reform program, we have avoided the need for a multi-billion dollar rescue package. It has also meant we have kept our people in meaningful employment while returning a dividend to the Federal Government,” said Fahour.
“It’s important we continue to focus closely on making sure our business is running as efficiently as possible, especially as we head into what is traditionally a much more challenging second half. We forecast the full year 2016/17 profit result will be better than 2015/16.”
Australia Post will release its full year results in September 2017.
