Australia Post has announced profit after tax of A$36m (US$27m) for the 2016 financial year (FY2016), representing a turnaround of A$258m (US$194m) when compared to the previous year. The post has attributed the increase to a strong performance in the parcels business and the impact of letters reform.
In the last financial year, addressed letter volumes fell by 9.7%, the largest ever 12-month decline, contributing to a loss in the postal business of A$138m (US$104m). However, profit from the parcels business increased by 8%, or A$314m (US$236m), during the same period.
Ahmed Fahour, managing director and group CEO, said, “Returning to profit is a pleasing result for our employees, post office operators and our other important stakeholders, and shows that Australia Post is on a more sustainable path for future growth.
“The parcels business has performed well despite increased competition from overseas players. We have outperformed in difficult market conditions to post an 8% profit increase.
“Changes to the letters business introduced earlier this year were an important factor in the group returning to profitability. While the letters business is in structural decline, we have reduced our forecast cumulative losses in letters from around A$5bn (US$3.8bn) to A$1.5bn (US$1.1bn) over the next five years.
“Our business is 207 years old, but we are more efficient and motivated than ever before. We have to continue to evolve to remain relevant and sustainable, so we can continue to serve customers and communities everywhere.
“We have a strategy that has an eye to the future ensuring our people have meaningful employment delivering great products and services to all Australians,” concluded Fahour.
September 1, 2016
