Australia Post has announced a full-year profit before tax of A$126m (US$100m), up from A$41m (US$32.7m) in FY16, as strong growth in the parcels business allowed for reinvestment in customer service initiatives.
Parcels profit before tax increased by 4.8% to A$299.7m (US$240m), whereas addressed letter volumes fell by 11.8% and contributed to a A$180m (US$144m) loss before tax in the postal business.
Christine Corbett, acting managing director and group CEO, said, “Our parcels business has experienced a strong year, with 4.8% revenue growth and an increase in volume delivered across the domestic and international network. Last Christmas we had our largest ever parcel delivery day, with more than two million parcels delivered in a single day, and we’ve continued to experience strong growth throughout what is traditionally a quieter second half.
“With new entrants to the market contributing to overall growth in e-commerce volumes, we expect our parcels business to continue to grow, allowing for reinvestment in customer initiatives like MyPost, parcel lockers and digital trusted services.”
She continued, “The letters business still presents a significant challenge, with our largest ever 12-month volume decline experienced this year. We need to continue to ensure this business is sustainable, while managing the declining foot traffic in post offices, and we are speaking with the community on how they may use the letters service in the future.”
Australia Post has advised strong parcels growth is expected to continue. However, the structural decline in letters will put pressure on the profit outlook for FY18.
August 29, 2017
