Australia Post has reported a boost in financial performance for the first half of the 2024 financial year, driven by a record-breaking peak season and strategic shifts under its Post26 initiative.
Strong start to the financial year
For the six months ending 31 December 2023, Australia Post recorded $120.7 million in profit before tax, marking a significant turnaround from the $189.7 million loss reported for the full 2023 financial year. Revenue reached $4.95 billion, a 7.5 per cent increase compared to the same period last year.
The surge in performance was largely driven by a record-breaking peak season, with parcel volumes soaring as Australians engaged in pre-holiday shopping. Parcel revenue increased by 9.1 per cent to $3.02 billion, while a rise in express services and growing eCommerce demand contributed to overall revenue growth.
Cost challenges and declining letter volumes
Despite the strong first-half performance, Australia Post remains cautious about the months ahead. The organisation continues to grapple with rising operational costs, including labour expenses and delivery network investments.
Letter volumes declined further, falling by 6.9 per cent over the period, reinforcing the long-term trend of reduced reliance on traditional mail. The letter business remains a significant financial challenge, with losses in this segment reaching $182.2 million.
Post26 strategy and operational improvements
Australia Post’s Post26 strategy, designed to modernise operations and enhance efficiency, has played a key role in stabilising financial performance. The strategy focuses on optimising delivery services, investing in digital transformation, and adapting to changing consumer behaviours.
CEO Paul Graham acknowledged the progress but cautioned that the second half of the financial year will be more difficult due to seasonal fluctuations and continued cost pressures.
“Our first-half results show encouraging progress, but we remain focused on transforming our business to ensure long-term sustainability,” Graham said.
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