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New Zealand Post reports $27m profit

Monday, September 11th, 2017
New Zealand Post has reported a net profit after tax from continuing operations of $27m for the 12 months to 30 June.
This represents a year-on-year improvement of $17m, said New Zealand Post in a statement issued today (11 September).
Revenue from operations was down 5% at $890m. However, underlying net profit after tax from New Zealand Post’s core business (excluding Kiwi Group Holdings) was $4m, an improvement of $12m on FY 2016.
“The result is a significant turnaround from 12 months ago. It is pleasing to return the postal service part of the business back to full-year profit,” commented New Zealand Post’s Chief Executive David Walsh.
“The positive effects of lower costs across the organisation and revenue growth in parcels has more than offset the impact of letter mail decline.”
The main feature of the year was 70m parcels processed and delivered, up 8.5% on the year before, said Walsh.
“This included a very strong Christmas period for parcel volumes, with numbers up by about 1.5m during November and December, compared to the previous year,” commented Walsh. “And uniquely this year, the usual slowdown post-Christmas didn’t happen as more and more people shopped online.”
Walsh said New Zealand Post is anticipating another record year for parcel volumes, and has been “peak period planning” for the pre-Christmas period since February.
Two areas of focus for FY 2018 are to convert parcel volume growth into higher revenue, and taking further steps to put the letters part of the business on a more sustainable footing, Walsh added.
Source: New Zealand Post