Postal service company, Australia Post, attributes its record-breaking financial results to an e-commerce boom.
The company posted a FY2020 group revenue of $7,499 million and a profit before tax of $53.6 million.
Total revenue grew by more than $500 million during the period, while growing losses in the letters business and increased network costs resulted in a profit before tax result up only $13 million compared to FY2019.
Postal and services revenue, according to Australia Post, was up 15 per cent at $5,503 million, adding $729 million to the full year result.
Branded parcels rose 25 per cent to $2,456 million. In the second half of the year parcel revenues were boosted by continued e-commerce growth.
Australia Post Group CEO and Managing Director, Christine Holgate, said the result highlighted the critical need for temporary regulatory relief announced by the Federal Government in April this year, as the business quickly adapts to changes in consumer behaviour accelerated by Covid-19.
“We understand the important role our Posties and Post Offices play in serving Australia," she said. "Protecting their roles, whilst meeting new community and business expectations, is critical as our business adapts to significant market changes. The Temporary Regulatory Relief provides us the opportunity to enable the Posties to deliver more parcels in turn helping sustain their roles and protect the viability of our Post Offices in a very challenging period."
Holgate said despite e-commerce growth, the business has made temporary changes such as pop-up delivery facilities and chartering plans for air freight to ensure efficient and safe operations.
Australia Post's domestic strategy with a focus on growing parcel network capacity, according to Holgate, served the business well following the launch of the largest processing facility in the Southern Hemisphere.
“Of course, this result would not have been possible without the continued hard work and dedication of our people – particularly our posties, delivery drivers, parcel and mail processors, contact centre and both corporate and licensed Post Offices teams," said Holgate. "They continued to show up for work each and every day through uncertain times and worked hard to ensure the community had sustained access to essential goods and services.”
Australia Post is cognisant of the challenging and uncertain economic conditions in the coming year and the potential impact on business and household expenditure.
The 2020 Annual Report will be tabled in Federal Parliament in October 2020.