Tag: New Zealand

The New Zealand Post Group has announced a net after-tax profit of USD68.7 million for the year ended 30 June 2006.

Chief Executive John Allen says the result, in a “challenging business environment”, was a solid improvement of 17% on the previous year’s comparative result of USD58.6 million (excluding the gain of the partial divestment of Express Couriers Limited (ECL) in 2005).

“Rising fuel prices, a tight labour market, increasing competition in key market segments and continuing changes in the way customers use our letter services have combined to make this a challenging year for the New Zealand Post Group.

“The financial result reflects the efforts of people throughout the business to respond to our changing customer requirements, work to contain costs, and identify and pursue strategic opportunities for growth.”

Mr Allen says the Group’s diversification strategy is proving effective with strong performances from Kiwibank, Datamail Group and international postal business.

“Kiwibank performed particularly well, more than doubling its after tax profit to USD15.8 million from USD7.2 million in 2004/05. This result was driven by growth in Kiwibank customer numbers, home loans and deposits.”

New Zealand Post on Tuesday posted a net annual profit of USD 68.7 million – 17% up on last year’s result.

The state-owned enterprise says challenges during the year included: rising fuel prices, a tight labour market, tough competition and changes in letter services.

Chief executive John Allen says Kiwibank, which announced last week it had made almost USD 16m, was the star performer for the group, .

However, that result is not factored into the Government’s dividend, which this year will be USD 27.7m.

New Zealand Post says its diversification strategy is reaping rewards, with the Datamail Group and its international postal business, as well as Kiwibank, all performing strongly in its annual result.

Mr Allen says the result has been achieved in a challenging business environment.

New Zealand Post will be laying off some head office staff. Communications Manager Richard MacLean says the redundancy is a result of a restructure of the company’s corporate section. He has declined to say how many staff will lose their jobs.