Australia Post announces profits “turnaround”, driven by strong parcels performance

Australia Post has announced a full-year 2016 profit after tax of $36m, which represents a $258m turnaround compared to FY2015. In a statement issued today (26 August), the postal operator said that the result was “driven by a strong performance in the parcels business and the impact of letters reform”.

In the traditional postal side of the business, Australia Post recorded a loss of $138m, as addressed letter volumes fell by 9.7%, the largest ever 12-month decline.

The parcels business, however, saw profits jump 8% to $314m.

Ahmed Fahour, Managing Director & Group CEO, said the return to profit was the result of strong financial discipline applied across the business, resulting in one of the biggest transformations in the organisation’s history.

“Returning to profit is a pleasing result for our employees, post office operators and our other important stakeholders, and shows that Australia Post is on a more sustainable path for future growth,” said Fahour.

“The parcels business has performed well despite increased competition from overseas players.

“Changes to the letters business introduced earlier this year were an important factor in the group returning to profitability. While the letters business is in structural decline, we have reduced our forecast cumulative losses in letters from around $5bn to $1.5bn over the next 5 years.

“Our business is 207 years old, but we are more efficient and motivated than ever before. We have to continue to evolve to remain relevant and sustainable, so we can continue to serve customers and communities everywhere.

“We have a strategy that has an eye to the future – ensuring our people have meaningful employment delivering great products and services to all Australians.”

Click here to access the full text of statement issue by Australia Post regarding the annual results.