New Zealand Post announce improved half year performance
New Zealand Post Group has announced an unaudited net profit after tax of NZD 21.7 million for the six months to December 2003, compared with NZD 19.6 million for the same period last year.
New Zealand Post Chief Executive John Allen said the result was ahead of expectation and included a strong performance from the International mail business and Kiwibank.
“Our International Mail business performed exceptionally well over the period largely driven by a significant 14 percent growth in international outbound packets and parcels. The period also saw positive growth in inbound bulk mail from Australia.
“This is a pleasing result which recognises the global nature of the markets we operate in and the need to support and develop overseas relationships in order to grow this part of our business.
“Kiwibank had another outstanding six months with more than 200,000 customers signed up as at December 31. Its remarkable growth continues to surpass expectations and it remains on track to return a profit in the next financial year.”
New revenue from the International business, Kiwibank and Retail contributed to an operating revenue increase of NZD 14 million for the six months to NZD 523.8 million, compared to NZD 509.9 million for the same period in 2002. Operating expenditure was NZD 486.6 million as opposed to NZD 470.6 million last year largely driven by wages, salary and inflationary increases.
The Board declared an interim dividend of NZD 13 million for the six months to December 03, representing 60percent of net profit after tax. This compares to NZD 11.8 million for the same period last year.
“It has also been pleasing to see that our determined focus on unlocking the potential of our courier businesses has resulted in an improved performance from the Express and Logistics Group with increased revenue and good cost control,” said Mr Allen.
“Our Letters business continued to face ongoing challenges of decreasing mail volumes with a 3.7 percent decrease on the previous year. However, despite a prediction that pressure on volumes will continue, we remain committed to growing direct mail volumes.
“The Retail Group had another sound performance, including continued success in delivering Kiwibank customer numbers. New PostShops were opened in Owairaka, Wakatipu and central Wellington. The success of the latest instalment of The Lord of the Rings stamp issue and the related coin programme also contributed to the Group’s result.”
Mr Allen said that looking forward New Zealand Post will continue to operate in an increasingly challenging environment.
“To ensure we are best meeting our customers’ needs, we will have an increased focus on finding opportunities to package and utilise the capabilities across the New Zealand Post Group,” he said.
Mr Allen added that New Zealand Post was on track to meet its targets for the year ending 30 June 2004.
Financial Performance Six months ended 31 December 2003 Six months ended 31 December 2002 Twelve months ended 30 June 2003
Net Surplus $21.7m $19.6m $27.1m
Operating revenue $523.7m $509.9m $975.1m
Operating expenditure $486.6m $470.6m $921.0m
Issued and paid-up capital $192.2 $192.2 $192.2
Shareholder’s funds $338.0m $320.0m $320.3m
