AusPost first half results show a $115m growth in profit after tax, an 8 per cent revenue growth, but an 11 per cent decline in addressed letter volumes, following the 9.5 per cent decline in the same period last year.
Revenue for the half year was at $3.5bn, compared to the previous year at $3.2m. Profit before tax is $197m, a massive leap from last year’s figure at $1m. Addressed letter volume decline is now in double digits per six months, which is not surprising given the strategy of hiking prices and slashing service.
AusPost says there were cumulative losses in the letters business which are stabilising. It claims that without changes to the letters business introduced early last year, independent modelling suggests this loss would have been more than $2bn today.
Ahmed Fahour, CEO, AusPost who caused a furore last week when it was revealed that his salary was ten times that of the prime minister and the head of the US Postal Service says, "Through the important postal reform program, we have avoided the need for a multi-billion dollar rescue package. It has also meant we have kept our people in meaningful employment while returning a dividend to the federal government.”
[Related: AusPost CEO earned $5.6m last year]
The result came from solid parcels growth with domestic parcel volumes up 5.7 per cent and overall EBIT growth of 15.6 per cent, as well as continued benefits from business efficiency programs.
AusPost street post boxes went over its target of 10,000 to 15,260, it says the percentage of letters delivered on time was at 98.5 per cent, with its target 94 per cent.
[Related: AusPost chief in line for mega merger]
Fahour says, this result demonstrates the strategy the business embarked on has returned Australia Post to sustainability, with the transformation to a parcels and ecommerce-centric business taking hold.
"Today more than 70 per cent of our revenue and 100 per cent of our profit is derived from commercial activities in parcels and ecommerce,"
"This is one of the strongest first half results in recent history and it demonstrates that we are on the right path to ensuring the future of Australia Post for our people, the community and our important stakeholders.
"We are delivering more parcels than ever before, with domestic parcel volumes up 5 per cent in the first half, market share increasing and at the same time we're trialling new delivery innovations like evening and weekend deliveries to give our customers an even better experience.
"On top of the investment in new parcel sorting machines last year, in the past six months we have installed new automated sorting machines at our major letter facilities and launched a new air freight domestic parcels network.
"We are also responding to global competitors entering the local market by investing in the future. Last year we made a strategic investment in global parcels/ecommerce giant Aramex and we are already reaping rewards in growing our inbound and outbound parcel volumes."
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