New Zeland Post: continuing growth
The New Zealand Post Group has announced a net after-tax profit of USD 70.2 million for the year ended 30 June 2007, compared to USD 68.7 million in 2005/06 year.
Chief Executive John Allen says the result represented a sound performance and was the sixth consecutive year in which an improvement in financial performance has been announced.
“We have had a successful year in an increasingly challenging environment thanks largely to a diversification strategy begun some 20 year ago when New Zealand Post became a State-Owned Enterprise. Today, banking, data management, software development, and express and logistics businesses now complement our postal business.
“As we celebrate our 20th birthday as an SOE, I am pleased to say that our New Zealand Post and Kiwibank brands are amongst the most trusted in New Zealand. Our Posties, Couriers, PostShop people, Mobile Mortgage Managers and Rural Delivery teams bring our brands to life every day for New Zealanders so that they are more than just advertising logos.
“The New Zealand Post Group also experienced 10 pct increases in earnings before interest and taxes (EBIT) and 10 pct growth in revenue.
“Kiwibank’s profit increased 61pct following another strong year in which the Bank acquired the mortgage book of AMP branded mortgages previously held by HSBC along with the Superbank deposit book and 51 pct share of New Zealand Home Loans. These acquisitions significantly enhanced the ability of Kiwibank to both meet the needs of diverse customer segments and support its continuing growth and development.
“The Postal business continues to face challenges as traditional mail declines although the effects of this trend are being offset by growth in packets and parcels usage, due to increasing online shopping and the variety of items that now make up mail.
“Our joint venture with DHL grew significantly expanding its range of logistics services and growing market share in the highly competitive express courier market.
“We are here for the long-term – not to maximize profit in any given year. We believe that by understanding our customers and the community we all live in, and investing in the right areas, this group of companies can expect to continue to grow sustainably.”
The 2006/07 result enables the New Zealand Post Group to return a total dividend to the Government – as sole shareholder – of USD 30.8 million & USD 27.7 million in 2005/06)
New Zealand Post Board Chairman Jim Bolger says, “Today, the New Zealand Post Group is a strong organization, proud of its long history and reach in this country and equally proud of its achievements, particularly during the past 20 years as it has matured as an SOE and entered into a variety of commercial undertakings.
