New Zealand Post reports NZD40.4 mil half year profit
New Zealand Post today reported a net profit of NZD40.4 million for the half year ended December 31, up from NZD21.7 million for the previous corresponding period.
Operating revenue for the period was worth NZD618 million, up from NZD523.8 million, while operating expenditure rose to NZD559.2 million from NZD486.6 million.
An interim dividend of NZD19.2 million will be paid for the half year, up from NZD13 million for the same time last year.
NZ Post’s chief executive John Allen said the higher earnings were largely due to an improved performance by the Express Couriers business, and a NZD6 million gain from the sale of the Christchurch Mail Centre. Kiwibank was also a major contributor, having posted it first ever profit last month, when it announced a half year net profit of NZD2.5 million, up from a NZD1.5 million loss the same time the previous year.
NZ Post said its Letters Group continued to face challenges due to the changing mix of mail and increasing popularity of electronic mail. The division is seeking to improve its mail processing by improving the read capability of machinery.
During the half year NZ Post sold its shares in holding company Express Couriers, which owns Courier Post, Pace!, SkyRoad and Contract Logistics, to form a 50/50 courier joint venture with Deutsche Post-owned DHL. In January NZ Post valued Express Couriers at NZD160 million to NZD180 million.
