Parcel growth helps MaltaPost grow profits by 37%
MaltaPost has increased its pre-tax profits by 37.5% in its latest 12 months, according to its latest preliminary statement. The island postal operator saw its profit rising to EUR 2.74m in the year up to the end of September, on a turnover that grew 9.6% year-on-year to EUR 23.72m.
The firm said increased parcel volumes pushed revenues up, while price increases mitigated the financial impact of ongoing letter volume declines.
The substantial profit gain came despite a 6.6% year-on-year increase in the company’s operating costs, which have mainly stemmed from rising labour costs and increases in the cost of sending mail off-island.
MaltaPost said it has been focussing on securing a “reasonable” share of the growing parcels market while diversifying its range of services to counter the “irreversible” decline in letter mail volumes.
Nevertheless, it said the high fixed cost of its universal service obligation should be “re-evaluated” to safeguard it in the future.
Commenting on the year’s performance, MaltaPost said in the statement: “The Board of Directors believes that the Company should remain focused on pursuing its diversification strategy so to provide an efficient and affordable portfolio of products that exceeds customer expectations, while also enhancing shareholder value.”
MaltaPost, which has been listed on the Malta Stock Exchange since 2008 but is majority-owned by the Lombard Bank, has been operating in a fully liberalised postal market since the beginning of 2013.
The company runs six deliveries each week to homes and businesses on the islands of Malta and Gozo, operating through a network of 27 sub-post offices and 431 retail partners.
