Australia Post Announces $200M Profit, Warns Of Losses
Australia Post has posted a profit of $200 million for the final six months of last year, a period that saw the largest parcel volumes in history.
Parcels and services revenue for the half-year was up 13.6 per cent, to $3.87 billion, while overall revenue was up 10 per cent, to $4.8 billion.
But CEO Paul Graham has warned that the current half-year will see the business deliver a loss, to drag full-year profits to a “modest” level.
Letters revenue dropped 1.2 per cent, to $935 million, resulting in $69.9 million in losses. This was despite the 2021 census mail-out. More letter losses are expected this half-year, while the parcel boom has also warned off.
Operational costs increased by 13.2 per cent, as Australia Post scrambled to hire workers to deal with the volume increases, as well as deal with COVID-19 constraints.
These constraints are expected to continue throughout this half-year. In reaction to rising cost, Australia Post recently trimmed $17.1 million from “head office support costs”.
“Australia Post will release full-year results in September, and at this stage expects to post a modest profit,” the company reported.