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Strongest parcel volumes in history delivers Aus Post revenue growth

weekend

Australia Post has announced group revenue for the first half of $4.3 billion, up 15.5 per cent year-on-year and Group profit before tax at $166.6 million.

Parcels and Services revenue was up almost $701 million, or 25.9 per cent, to $3,403 million, largely due to the strongest parcel volumes in the organisation’s history which continued to be delivered to communities across the country during COVID-19 restrictions.

Capital investment during the period increased to $189.4 million, up $40.3 million on last year, with continued investment to improve the business and increase the capacity in the parcels network, including the new Sunshine West Facility which opened pre-Christmas.

StarTrack and the international business, Australia Post Global eCommerce Solutions, both delivered strong results, with a disciplined focus on cost, an increase in volumes, and growth in third-party logistics and cross-border eCommerce.

Acting Group Chief Executive Officer and Managing Director Rodney Boys said the result was a significant achievement given the uncertainty of COVID-19 and the necessary network changes required to continue to provide essential goods and services to customers.

“The ability of our people to adapt during this intensely challenging period has ensured many businesses across the country have been able to continue to operate and communities have been able to access our services – with Post Offices and delivery services continuing throughout COVID-19,” Rodney said.

“The regulatory changes to our delivery services have provided the flexibility to adapt our resources and people to where they are most needed and it has been a credit to our people they were able to respond to suit the rapidly changing consumer needs, with more than 2,000 of our posties moving to parcel delivery to help manage the significant growth in eCommerce, as large and small businesses serviced their customers online.”

Rodney said 107 million customers visited its corporate and Licensed Post Offices across the country in the first half, with 23.7 million visits alone in December, supported by the group’s  hard-working Post Office team and Licensed Post Office partners committed to serving the community during this challenging time.

“Following the S&P ratings downgrade in November 2019, whilst still below the profit levels of several years ago, it is pleasing to see year-on-year improvement as we work hard to restore the financial position at the same time as continuing to invest to meet changing customer demands.”

It is expected eCommerce will be more subdued in the second half while letter losses will continue, contributing to an overall loss in the next six months.

Australia Post will release full year results in September.

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