Trailer Magazine

Australia Post reports $126.1 million FY17 profit

  • Posted on Tuesday 29th, August 2017.

Australia Post has announced a full-year profit before tax of $126.1 million, up from $41 million in FY16, a leap it attributes to continued strong growth in the parcels business allowed for reinvestment in customer service initiatives.

Parcels profit before tax increased by 4.8 per cent to $299.7 million, thought addressed letter volumes, down 11.8 per cent, contributed to a $180 million loss before tax in the postal business.

Australia Post Acting Managing Director and Group CEO, Christine Corbett, said the result demonstrates Australia Post’s shift to becoming a major e-commerce player is paying dividends.

“Our parcels business has experienced a strong year with 4.8 per cent revenue growth and an increase in volume delivered across the domestic and international network,” she said. “Last Christmas, we had our largest ever parcel delivery day, with more than two million parcels delivered in a single day, and we’ve continued to experience strong growth throughout what is traditionally a quieter second half.

“With new entrants to the market contributing to overall growth in e-commerce volumes, we expect our parcels business to continue to grow, allowing for reinvestment in customer initiatives like MyPost, parcel lockers and digital trusted services.

“The letters business still presents a significant challenge, with our largest ever 12-month volume decline experienced this year. We need to continue to ensure this business is sustainable, while managing the declining foot traffic in post offices, and we are speaking with the community on how they may use the letters service in the future.”

Australia Post advised that the strong parcels growth is expected to continue, however the structural decline in letters will put pressure on the profit outlook for FY18.

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