Australia Post announces record revenue, but profits still falling

Australia Post announces record revenue, but profits still falling

Australia Post has announced for FY19 record group revenue of $6,990 million, up two per cent. However it also announced a profit before tax of $41 million, down almost two-thirds from last year’s results.

This letter revenues declined almost 9 per cent to $2,216 million and losses from this business increased to $192 million.

This full year profit result is in line with that achieved three years ago, although masks the significant transformation from a letter business to a growing delivery and services organisation.

Australia Post has forecast that although Group revenue will grow in FY20, there will be continued pressure on profitability due to the ongoing impact of letter losses.

“This year we saw record domestic and international parcel revenue as more and more customers are choosing Australia Post as their preferred partner to deliver their ecommerce ambitions,” Christine Holgate,  Group Chief Executive Officer and Managing Director, Australia Post said.

“We also signed the historic Bank@Post community agreements this year, first with Commonwealth Bank, NAB and Westpac, and now more than 70 financial institutions have signed on. The Community Representation contribution will enable customers to continue to conduct essential banking transactions in 3,500 Post Offices across Australia using the Bank@Post service.”

Other highlights for the financial year included:

  • Continued investment program across the operational network – invested $424 million including $300 million CAPEX in robotics and automation and 1000 electric delivery vehicles purchased to support the growing ecommerce market, offering significant safety and environmental benefits
  • Increased investments were funded from improved operating cashflows, cash grew $36 million
  • Customer Net Promoter Score up 3 points to 20.5 – a standout performance compared to other logistics operators and retailers
  • Secured an agreement with important post office licensees – providing increased payments for parcels and financial services, in addition to upgraded technology.
  • Strong customer uptake of alternate delivery options – more than 90 million parcels delivered via the Post Office network and increasing use of 24/7 Parcel Lockers in 350 locations and growing
  • Full acquisition of Aramex Global Solutions, now known as AP Global, completed in December 2018 contributing $78 million in additional revenue and giving Australia Post full control of its international commercial arm.
  • Disposal of 10 per cent stake in Aramex parent for $228 million, reducing exposure to risk
MREC HERE

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