NZ Post “on the right track to return a profit in future financial reporting”
NZ Post has reported a Financial Year 2024 result of -$14 million, a $42 million lift in earnings from continuing operations.
NZ Post Chief Executive David Walsh says this is a pleasing result for NZ Post. “This year’s result shows a significant improvement and is consistent with our multi-year financial plan. The reported loss of $14m for the current year compares to a continuing operations loss for FY23 of $56m.”
FY23 also included one-off items of a $36m provision for future mail change costs, and $105m profit from the sale of Kiwi Group Holdings.
“Despite challenging trading conditions, our ongoing focus on managing cost and our investment for growth means NZ Post is on the right track to return a profit in future financial reporting periods.”
“We were also pleased to grow shareholder value in the year, with an increase of $126m in our enterprise valuation, and to pay a $100m dividend to the Government as shareholder.”
Key points from 2023/2024 Financial Year
- Full Year financial result of -$14m reflecting an earnings improvement from continuing operations of $42m
- Purchase of PBT courier customer contracts, bringing in 3,000 new customers
- 84m parcels delivered (84m in FY23)
- 187m letters delivered (221m in FY23), a 15 percent decrease
- Auckland Processing Centre opened
- An increase of $126m in enterprise value
- $100m dividend paid to Government as shareholder in May 2024
NZ Post has continued our investment in parcel processing infrastructure to support growth.
“A particular highlight this financial year has been the opening of our Auckland Processing Centre (APC). This site is the third, and by far the largest, to open as part of NZ Post’s investment in parcel processing infrastructure, following the earlier opening of the Wellington Super Depot and the upgraded Christchurch Processing Centre.”
“Capable of processing up to 30,000 parcels per hour, the APC is a generational investment. This hub of international and national processing will bring together NZ Post, the Ministry for Primary Industries and the New Zealand Customs Service on one site.”
NZ Post has also invested in growth with the purchase in June 2024 of PBT’s courier customer contracts.
“We are in the process of onboarding around 3,000 new customers and we are confident they will benefit from NZ Post’s extensive network and service. We are looking forward to working with these customers and helping them grow their businesses.”
Mail volumes continue to decline with 187m letters sent this financial year, compared to 221m the year prior, a 15 percent decrease. In March 2024 NZ Post confirmed plans to over time progressively stream mail into our parcel network to create a sustainable and cost-effective service through one urban network.
NZ Post remains focused on costs across the business. “We have made significant progress in corporate cost management and finding efficiencies in all parts of our business this financial year.”
“NZ Post will continue to evolve to meet the needs of New Zealanders. We are coming to the end of our major capital investment programme which has seen us build an unmatched delivery business. This year’s financial result reflects the transition that we are undertaking, and is a pleasing result all things considered. We look forward to delivering on our multi year financial plan, which sees us returning to profitability and becoming a regular dividend payer,” says Walsh.
