Parcelling up a profit riseAustralia Post achieved a group profit of $312 million after tax in 2012-13 - a 10.9 per cent increase on the previous year, delivering a $244 million dividend to the Government.
Growth in the digital economy and the StarTrack acquisition boosted Australia Post's income. This was apparent in the parcels business, which continues to be the key driver of revenue and profit growth for.
Parcels generated $355 million profit in the last financial year, with domestically delivered parcels volume growing by 9.3 per cent fuelling underlying revenue growth of 8.4 per cent.
Managing Director and Chief Executive of Australia Post, Ahmed Fahour said mail volumes continued their steep decline in 2012-13 falling by 5.4 per cent.
“Australia Post now delivers one billion fewer letters per year than we did in 2008 due to the shift by both businesses and consumers to digital means of communication,” Mr Fahour said.
“As a result of the volume decline and the absence of a stamp price increase for the last three years, mail revenue has continued to fall by 4.5 per cent in 2012-13 and losses in the domestic mail business grew by almost 60 per cent.”
He said that despite the large loss, mail service performance remained high with 96 per cent of bulk and ordinary mail delivered on-time or early.
"These negative volume trends in letters will continue and the cost to deliver on our Community Service Obligations will also continue to grow, constraining our ability to continue to deliver an efficient and cost-effective service for Australian consumers and businesses," Mr Fahour said.
"If unchanged, the widening losses in our traditional letter services will eventually stifle positive developments in our parcels business.”
He said that despite very strong financial and operating results, Australia Post had hit a turning point in its business trajectory where strong cost management and a $2 billion investment in its national logistics network would soon not be enough to compensate for the losses in the traditional mail business.
"One of the biggest achievements of the past year has been the increase in employee engagement across the business. Our engagement score rose four points this year to 78 per cent and our new Enterprise Agreement was endorsed by 75 per cent of our 30,000 plus award staff," Mr Fahour said.
The full report can be viewed at this PS News link.
Edition 384, 22 October 2013