Losses of Latvia Post reduced almost five times in 2008

In 2009, the postal company plans to operate without any losses and to earn a moderate profit in 2010.

Last year, Latvia Post operated with LVL 14 million in losses. Approximately LVL 4 million losses resulted from press delivery in the countryside and another LVL 4 million losses came from sustaining post offices network in regions. Losses resulted also from an inefficient management and other factors.

Turnover of Latvia Post last year was LVL 44 million.

“LVL 14 million losses for a company, which operates with LVL 44 million turnover, is a disaster,” Krauklis said.

He pointed out that last year the increase of postal tariffs was delayed, which resulted in the company providing services for a lower price that the actual costs, therefore “problems have piled up”.

The aim of Latvia Post is to maximally reduce the losses this year.

Continuing to increase the efficiency of the company’s activities, the number of employees this year was cut by approximately 200 staff members. Latvia Post continues its internal audit and, as Krauklis prognosticates, the number of company’s workers could be reduced even more, however, he underlines, it only concerns the people working for the company’s administration as staff positions for postmen, operators, drivers and mail sorters will remain as before.

1 US Dollar (USD) = 0.47504 Latvian Lats (LVL)

In 2009, the postal company plans to operate without any losses and to earn a moderate profit in 2010.

Last year, Latvia Post operated with LVL 14 million in losses. Approximately LVL 4 million losses resulted from press delivery in the countryside and another LVL 4 million losses came from sustaining post offices network in regions. Losses resulted also from an inefficient management and other factors.

Turnover of Latvia Post last year was LVL 44 million.

“LVL 14 million losses for a company, which operates with LVL 44 million turnover, is a disaster,” Krauklis said.
1 US Dollar (USD) = 0.47504 Latvian Lats (LVL)
He pointed out that last year the increase of postal tariffs was delayed, which resulted in the company providing services for a lower price that the actual costs, therefore “problems have piled up”.

The aim of Latvia Post is to maximally reduce the losses this year.

Continuing to increase the efficiency of the company’s activities, the number of employees this year was cut by approximately 200 staff members. Latvia Post continues its internal audit and, as Krauklis prognosticates, the number of company’s workers could be reduced even more, however, he underlines, it only concerns the people working for the company’s administration as staff positions for postmen, operators, drivers and mail sorters will remain as before.