Australia Post sees record profit, on prowl for acquisitions
Australia Post today achieved a record profit after tax of $A297 million ($US163.8 million) for the financial year 2002, as its chairman Linda Nicholls said the company was one of the best performing postal services in the world.
She said the quality of the corporation’s earnings improved markedly with underlying trading performance up by more than $A49 million ($US27.02 million).
The profit after tax was reached off total revenue of $A3.758 billion ($US2.07 billion), up from the previous year’s revenue of $A3.748 billion ($US2.07 billion).
Australia Post said growth is again forecast for the 2003 financial year despite continued pressure in core businesses.
It said the balance sheet, with a gearing level of 31.7 per cent, provides scope for further growth and specifically allows Australia Post to pursue strategic acquisition opportunities as they arise.
“Extracting network efficiency continues to be a primary goal and capital investment in both the large letter and parcel networks represents a key investment in the coming year,” Australia Post said.
Mrs Nicholls said Australia Post’s business environment will continue to present real challenges but she is confident that it is pursuing the right strategy.
She said the result was achieved through technology efficiency gains and cost containment.
“We are now fully realising the benefits of our network renewal program, which with letter barcoding has transformed the way mail is processed in Australia,” Mrs Nicholls said.
Managing Director Graeme John said Australia Post will further enhance the robustness of its network through large letter and parcel network restructures.
He added a number of factors, including slowing mail volume growth, has led the corporation to seek pricing changes this year.
Australia Post has applied to the Australian Competition and Consumer Commission to raise the price of the basic postage stamp to 50 cents from 45 cents, which it hopes to apply from January 2003.
Despite the proliferation of emails, Mr John said Australia Post was receiving more letters now than at any time in its history.
Mr John said the future of Australia Post will increasingly be in areas such as the one it had pioneered this year – the assembly, packaging and distribution of Microsoft Xbox in Australia and New Zealand.
The report showed Australia Post has increased its business banking services to 320 locations. It has more than doubled its regional business banking service locations to 300 from 114 previously.
It now has services for the Commonwealth Bank of Australia, National Australia Bank Ltd, Bank of Western Australia Ltd and the Bank of Adelaide Ltd.
