Australia Post sees financial year gross profits soar


Investment of $450 million including network upgrades and expansion and fleet

Australia Post sees financial year gross profits soar
Australia Post thanked its staff for the record result

 

Parcels are floating Australia Post’s financial boat more than ever.

The federal government-owned entity recorded a 10.3 per cent financial year rise in group revenue of $8.27 billion and profit before tax $100.7 million - up 87.7% from $53.6 million.

Continued growth in eCommerce brought about by COVID-19, with strong parcel growth. Parcels & Services revenue grew 17.7% to $6.48 billion, on the back of a 27.1% increase in Australia Post branded parcels, and StarTrack volumes up 12.1%.

AP Global continued to grow cross-border e-commerce business, with revenue up 90.6% to $429 million and its end-to-end logistics solutions for a portfolio of global e-commerce merchants delivering more than 40 million parcels.

Profits were up despite network disruptions, additional resources to support lockdowns, processing unprecedented parcel volumes and significantly reduced transport capacity, the group said.

Confirmation of the steady decline of letters a form of communication came with volumes down 11.6% and revenue from them at $202 million.


Read how December set the scene for the big profit, here


"This strong result rests with the hard work of our people, who have continued to deliver everyday through the challenges of a pandemic and numerous lockdowns," Australia Post Acting group CEO and MD Rodney Boys said.

"It is fitting that we recognise our people through the positive vote for the new enterprise agreement which preserves existing terms and conditions while delivering a three per cent pay rise for each of the next three years, for over 31,000 people across the deliveries, post office network, customer services and office teams.

 "The strength of eCommerce – up 31.8 per cent as Australians took to online shopping in record numbers – has supported the result, as did the temporary regulatory changes which allowed us to meet the significant parcel demand and ongoing mail delivery.

"Our post office network performed strongly, and despite challenging times, we kept 99 per cent of our post offices open, allowing people to access important services, including Bank@Post – where we also signed landmark extensions with CBA and NAB for a further 10 years.

"We have accelerated our investment program with $450 million invested last year in our delivery network, including in processing facilities, our last-mile delivery fleet, electric vehicles and expanding our Parcel Lockers footprint, increasing delivery options for consumers and further significant projects to be completed in the year ahead."

Australia Post also returned dividends to the government of $46.2 million.

The enterprise notes that considerable uncertainty remains as to the impacts of the ongoing pandemic on the next financial year and that the 2021 annual report will be tabled in federal Parliament in October. 

 

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