Irish postal operator An Post has announced strong revenue growth of 4% in 2023 to €922.9m (US$989.3m) – driven primarily by 14% growth in e-commerce parcels compared with 2022 – and has launched its new five-year Green Light 2028 business strategy.
The new strategy envisages a triple-digit growth in e-commerce business; a drive to grow the circular economy, reaching An Post’s 2025 target of 50% emissions reduction ahead of target and achieving its net zero carbon emissions target by 2030; continued growth in financial services and next-generation mail services; and delivery on An Post’s Digi Corp vision connecting customers digitally in every community.
The post delivered 52.7m parcels in 2023 and an average of 23 parcels per address, compared with 10 parcels per address in 2019. It also handled 27% more parcel returns from customers back to e-tailers in 2023 compared with 2022 and reported 98% customs compliance for parcels from outside the EU, while €60m (US$64.3m) was collected in customs revenue on behalf of the Irish state.
Strategic initiatives
This growth in e-commerce volumes formed part of the now completed phase one of An Post’s transformation strategy and forms the basis for the company’s Green Light 2028 strategy to expand An Post to a €1bn (US$1.07bn) business with €100m (US$107m) EBITDA.
The strategy encompasses several strategic initiatives, including:
- Growth in e-commerce business – building on large international e-commerce contract wins in 2023; becoming an expert in international trade for Irish companies, with triple-digit percentage growth anticipated across B2C, C2C and B2B channels over the next five years.
- Next-generation mail services, building on the success of digital stamps, with guaranteed next-day delivery; a major strategy to drive the circular economy is expected to further increase e-commerce parcel volumes by 15%. By establishing reuse and resale as everyday practice for people of all ages, the post office and postal service will be the engines for selling and sending, reusing and recycling, using great-value products and services and emission-free deliveries.
- Now the largest EV fleet operator in Ireland, An Post will achieve net zero target by 2030 and reach its 2025 target of 50% emissions reduction ahead of time. Most of the HGV fleet will be converted to cleaner HVO fuel with a 91.8% reduction in carbon. A further 750 electric vehicles are already on order for 2024, to replace diesel vans.
- Moving financial services from startup to powerful challenger through partnerships, technology and best products. This will include a first in Ireland and UK ‘dynamic CVV’ facility to help protect An Post current-account customers against financial fraud.
- Delivering on An Post’s Digi Corp vision, building the most sustainable, data-driven and future-looking networks; becoming expert on workforce design and delivery, leveraging AI to benefit customers, transforming operations and creating more capability for the market.
Revenue generation and investment
An Post will invest €200m (US$214m) from internally generated resources in its new Green Light 2028 strategy over the next five years. The company envisages new revenue generation of €260m-300m (US$278m-321m) to offset declining letter volumes.
Commenting on the results and Green Light 2028 Strategy, David McRedmond, CEO of An Post, said, “An Post is a vibrant commercial business that I am proud to say has returned to growth and positive cash flow with improved profitability, having completed the first phase of our company transformation, delivering on our key strategic objectives, and all with no state subsidy.
“I’m excited to embark on phase two of our transformation with our new Green Light Strategy 2028. This will focus our activities for the next five years and see an acceleration of An Post’s transformation into a Digi Corp as we leverage our digitally connected workforce in every community, our rich data and the company’s increasing technology capability. We intend to continue to deliver for the people and businesses in Ireland while remaining committed to our core purpose to act for the common good, now and for generations to come.”