Pandemic Parcel Boom Boosts Australia Post To $3.4bn
Australia Post reported a first-half revenue of $4.3 billion, with its Parcels and Service business reaching a record-breaking $3.4 billion due to a pandemic-related package boom.
The government-owned mail service posted a profit-before-tax of $166 million despite letter losses of just over $74 million.
Australia Post’s parcel revenue made history for the period, up by $701 million or 25.9 per cent to a whopping $3.4 billion.
Letters volumes fell by 13.1 per cent – but parcel deliveries recouped the loss as volumes skyrocketed due to the pandemic lockdown.
“The regulatory changes to our delivery services have provided the flexibility to adapt our resources and people to where they are most needed and it has been a credit to our people they were able to respond to suit the rapidly changing consumer needs, with more than 2,000 of our posties moving to parcel delivery to help manage the significant growth in e-commerce, as large and small businesses serviced their customers online,” Australia Post Acting CEO Rodney Boys said.
Boys told The Australian Financial Review he expected the ecommerce boom subsequent parcel delivery volume to slow in the second half.
Australia Post will release full year profits in September and Boys said he expects a modest profit.
The mail service’s impressive results come after former CEO Christine Holgate resigned after a high-profile enquiry into internal spending.