New Zealand Post reports $141m net profit
New Zealand Post has reported a net profit after tax (NPAT) of $141m for the financial year which ended in June. The NPAT result was down 1.4% ($2m) on the previous financial year. Revenue fell by 6.6% to $1,485m and this was matched by a 6.6% reduction of expenditure to $1,335m.
“The profit is largely due to Kiwibank and the proceeds from the sale of New Zealand Post’s Australian-based subsidiary Converga to Canon Australia,” said Brian Roche, New Zealand Post Chief Executive. “Kiwibank had a good first half performance, however this was not matched in the second six months.”
In the postal services business (which includes parcels, letters and logistics), letter volumes continued to decline at a rate of approximately 8% but parcel volumes and revenue were up 6.4% and 2.9% respectively. Excluding one offs, the postal services business made a small loss. However, ongoing investment in processing and delivery technology position it well for the future.
“New Zealand Post is now in the investment phase of its business strategy. It is a leaner organisation positioned for further parcel growth, with a renewed focus of putting customer choice at the forefront of decision making,” added Roche.
“Margin growth is difficult in challenging market conditions, but we’re seeing good parcel trends, with parcel volumes growing by 6.4%. We will continue to actively explore market opportunities to grow our core future business in parcels.”
