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AusPost reports $134M profit and e-commerce growth for FY18

  • Posted on Friday 26th, October 2018.

Australia Post has released its annual report, summarising its financial, social and environmental activities for the period 1 July 2017 to 20 June 2018.

John Stanhope, Australia Post Chairman, said the postal service company delivered a quality community service while performing commercially and earning a profit that can be re-invested in its business for the benefit of all Australians.

“The underpinning theme of the year was, again, the ongoing transformation of Australia Post from being primarily a letters-focused business into an e-commerce delivery business,” said Stanhope.

“This shift in our core business is evident in the fact that this year we enjoyed double-digit growth in parcels volumes (as more Australians shopped online), while recording double-digit declines in the volume of letters that we deliver.

“The fact that we have managed the operational and cultural changes associated with this transformation, while maintaining profitability and customer service performance, is a triumph of strategic planning and implementation. And, most importantly, this shift has been achieved while staying true to our original purpose.

“Australia Post has always been the organisation that connects Australians to each other and the world – and that still remains the case today,” he said.

Stanhope said that Group CEO and Managing Director, Christine Holgate, joined the business in October 2017, and since her arrival Australia Post has embarked on a significant strategic review of the company.

“I am pleased to share that Australia Post reported a full-year profit after
tax of $134 million for the 2018 financial year, which is up 41 per cent on our profit result last year. Excluding the benefit of property items, pre-tax profit was up 280 per cent, from $19 million to $72 million,” said Holgate.

“This result was underpinned by strong parcel volume growth, both domestically (up 10 per cent) and internationally (up 19 per cent) – and a range of efficiency measures across our operational and support functions.

“Together, this helped offset the impact of an 11 per cent volume decline in our important letters business. Once again, this year, we either met or exceeded all of the prescribed performance standards that underpin our community service obligations.

“Importantly, we maintained broad community access to our network, via 4,356 post offices (in excess of our target of 4,000) and delivered 98.5 per cent of letters on time or early (ahead of our 94 per cent target).

“The double-digit shifts in both letter and parcel volumes this year underline the continuing operational and cultural transformation of our business – from being primarily a letters-focused business into a competitive delivery and service business, at the cutting edge of e-commerce.

“Around 82 per cent of Australia’s e-commerce is facilitated by Australia Post and last year we managed 376 million financial transactions,” she said.

According to Holgate, Australia Post’s strategic review highlighted several growth opportunities to improve its customer service, operational efficiencies and ongoing sustainability practices.

The business contributes $6 billion to the national economy.

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