Estonian Post appoints Aavo Kärmas as next CEO

Estonia Post has appointed its board member Aavo Kärmas as its next chief executive on a five-year contract effective from March 1, 2012. The postal operator’s supervisory council unanimously chose Kärmas, who has been a board member for five years, after considering 19 candidates.

The new CEO will succeed Ahti Kallaste, who resigned in November in order to take up a position in his family company once his current contract runs out at the end of February.

Meelis Atonen, the chairman of Estonia Post’s supervisory council, said Kärmas had the “clearest vision” for the company, and had already shown good work for the organisation.

“There are challenging times to come, but I believe that Aavo Kärmas will complete our Baltic expansion projects successfully and lead Estonian Post firmly towards better results,” said Atonen.

Kärmas said his strategy for Estonian Post was to continue on its current course, while preparing itself for rapid changes in the marketplace.

“Estonian Post has operated in the free market environment for years. We can’t ignore what is happening around us, but we must be prepared for quick changes,” he said.

The next Estonian Post CEO said the company would have to continually develop its services according to its customers’ growing demands, but was also in a good position to expand its activities in the Baltic region. The company is in the process of rolling out its parcel collection and delivery network, using automated parcel terminals, through Estonia, Lithuania and also soon Latvia.

Kärmas added: “Reliability is our most important value, which means that we are completely committed to our daily work, and that we keep our promises. This concerns both our customers and co-workers. I am sure that doing so we can all achieve success.”

Profit

Estonian Post released its fourth quarter results today, showing that it ended the 2011 year in profit.

The unaudited results showed 4% revenue growth compared to 2010, with the postal service achieving a EUR 1.2m profit for 2011 on a EUR 47.6m operating income.

Atonen said: “We are pleased to note that the company has closed its fourth consecutive year with profit. Given the economic situation and universal service obligation, this is a good result.”

The Estonian Post results were based on growing parcel volumes but a decline in letter and periodical volumes. The Post delivered 34m letters and 1.8m parcels during 2011.

The company said its most important achievements during the year included launching its Euro Exchange Project in its 384 post offices, and the launch of its Post24 parcel terminal network as well as new digital services.

Kallaste, the departing CEO, said: “For the coming years our main target its to contribute more extensively to the development of parcel and e-services.”