Australia Post posts solid revenue growth

Australia Post today announced first-half revenue of $4.80 billion, up 10.4% year-on-year, driven by the highest parcel volumes in Australia Post’s history.

The improvement in the Group’s pre-tax profit of $199.8 million was underlined by asset sales and revaluations, as well as favorable movements in bond yields.

Letter revenue of $935 million was down 1.2% from a year ago, despite the large 2021 census mailout.

Operating costs, which increased 13.2% from last year, reflect volume increases and network constraints related to COVID-19 that are expected to continue in FY23.

Capital investment during the period increased to $217.8 million, up $28.4 million from a year ago. This is part of $400 million committed to new parcel facilities, fleet and technology by mid-2022 to help meet growing demand for services, bringing the total investment committed to more than one. billion dollars over three years.

The company has also committed an additional $20 million to upgrading systems to cloud-based solutions over the next year to improve network scanning and tracking of packages.

Australia Post Company agreements

Australia Post secured new corporate agreements during the semester, for more than 30,000 Award-level employees, with market-leading agreements offering a guaranteed 9% pay rise over the next three years for members of the Australia Post and StarTrack team, while maintaining existing key terms. and terms of employment.

Parcels and services

Parcels and services revenue increased by nearly $464.5 million, or 13.6%, to $3.87 billion.

Despite the network challenges associated with thousands of team members having to self-isolate during this critical time, our employees have continued to deliver in communities across the country. StarTrack delivered strong results, with a disciplined focus on costs and growing volumes.

Letters

Letter volumes decreased by 0.7% and revenues decreased by 1.2%. The continued structural decline in letter volumes and increased delivery points for this important community service resulted in losses for half of $69.9 million.

Operational

Australia Post continued to generate savings through business efficiency programs implemented across the organization, including corporate support costs of $17.1 million.

Group expenses increased by 10.2%, due to additional costs incurred as the organization faced pandemic-related network constraints, as well as limited domestic and global airlift capacity.

Group CEO and Managing Director Paul Graham said the result was a significant achievement given the continued disruption to the business during the COVID-19 pandemic and the network changes needed to continue delivering services. essential goods and services to customers.

“Like many companies across the country, we have faced unprecedented challenges over the past year, but the ability of our employees to adapt to the current challenges presented by the COVID-19 pandemic has been simply remarkable”,

“Together, we have worked tirelessly to manage the health and well-being of our people, with isolation rules and travel restrictions in different states and territories, all bringing different challenges – while our people have remained resilient and delivered for our communities.

“I want to thank all of our employees for their spirit and willingness to do the job for our customers. This is a credit to all of our team members in processing, delivery, customer service, our post offices (including authorized post offices) as well as our contractor partners.

“Our retail network of over 4,300 post offices continues to provide essential government and financial services, particularly in rural and remote parts of Australia, where [email protected] remains an invaluable service to communities.

“We had 112 million visits to our corporate and licensed post offices across the country in the first half, with 20 million visits in December alone.”

Paul Graham, Group Chief Executive and Managing Director, Australia Post

Outlook

E-commerce is expected to be more subdued in the second half as letter losses continue, contributing to an overall loss over the next six months. Australia Post will report its annual results in September and at this stage expects to post a modest profit while being mindful of the continued uncertainty of COVID-19 and the pressures facing customers.

Editorial note: This message is from a company press release and may have been edited for clarity.

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