Australia Post reports 65% profits increase, bolstered by property sales and one-off benefits
Australia Post has reported that its profit after tax for the six months to 31 December was up 65% at $217m, and group revenue up 3% at $3.6bn.
However, in a statement issued today (27 February), Australia Post said that the profit was “bolstered by property sales and other one-off benefits” and it expects to make a loss in the next half-year.
Parcel revenues were up by 8%, but this did not fully compensate for the 10% fall in addressed letter volumes.
There was strong inward growth from Asia, with inbound parcel volumes up 45%, with almost all of this growth coming from China.
The fall-off in traditional mail is continuing. Indeed, Australia Post said that addressed letter volumes have fallen more than 26% in three years. There has been some short-term relief, as letter revenues in the six-month period received a boost from the Australian Marriage Law Postal Survey. “Without this survey,” said Australia Post, “letter revenues would have experienced an even sharper decline.”
The company said that the latest results “demonstrate the compelling need and significant challenge for Australia Post to continue to transform”.
Group Chief Executive Officer & Managing Director Christine Holgate said that, during the first half, the business made progress in driving further operational efficiencies, achieving a further $113m in expense savings, which helped costs to grow marginally below revenues.
“Two-thirds of Australia Post revenues are now in competitive markets and although deliveries were strong and cost savings were encouraging, trading EBITDA was flat at just 1% growth,” Holgate said.
“Reported profit after tax of $217m was up 65%, or $86m, boosted by benefits from property transactions and other one-off items.
“Due to the strong seasonal nature of our business we expect to again make a loss in the second half.
“We do though forecast a full year profit before tax result in-line with last year. Going forward it is critically important we focus on returning Australia Post to sustainable growth.
“In developing our new strategy it will be important Australia Post continues to meet the needs of Australians including by maintaining a healthy and viable Post Office network, including our Licensed Post Office partners.
“We are currently working to find new revenue streams for our Post Offices, as their role in communities becomes increasingly important to serve an ageing population and with traditional services closing branches.”
