NZ Post has reported an operating profit of $9 million
for the half year with record-breaking volumes of parcels,
while maintaining a high quality of service. Including our
share of earnings from Kiwi Group Holdings Limited this
results in a net profit after tax of
$27million.
“This volume growth, and the increasing
trend of New Zealanders shopping online, shows that NZ Post
has a successful and exciting future. NZ Post’s previously
announced investment in our network will help set us to be
more efficient and continue to meet our customers’ needs and
help New Zealand businesses grow,” NZ Post Chief Executive
David Walsh says.
The Half Year financial results for
2020/2021 include:
- A net profit after tax (NPAT)
of $27 million (including our share of earnings from Kiwi
Group Holdings Limited) compared to NPAT of $31 million for
the same period last year - A $2 million increase in
revenue, which includes a $42 million increase in parcel
revenue and a $39 million decline in mail revenue - An
increase of $28 million in operating expenditure, as we
dealt with an increase in costs associated with increased
and unpredictable COVID parcel volumes, and maintained our
high quality service - 32.2 million fewer letters sent
(an 18% decrease) - An $8 million increase in profit
after tax from Kiwi Group Holdings
“We’ve
just delivered another record-breaking Christmas, with an
average of 6 parcels being delivered every second across New
Zealand. We’re so proud of what our people did to make
this happen, and that during this time Kantar measured us as
delivering 98% of domestic courier parcels on
time.
“Our International business had to be
innovative by using more sea freight, setting up different
transit hubs, and even chartering planes ourselves to get
items to the right place, wherever that may be in the world,
as we responded to the impact of the pandemic on freight
movements. We will continue to face challenges as the world
grapples with the pandemic response with fewer flights
entering and leaving the country but will look to minimise
the impact on our customers as much as possible.
“In
the last six months our Māori leadership programme Te
Hononga finished its second successful year, we were also
thrilled to receive the Rainbow tick, and we welcomed two
new members of our Executive Leadership team, Monica Ayers
and Rhonda Richardson.”
During the first six months
of the financial year NZ Post successfully supported the
General Election, with an increased emphasis on postal
voting, however, letters revenue continues to fall
overall.
“This ongoing decline was acknowledged by
the Government in the 2020 Budget, with a Contract for Mail
Services of $130 million over three years to allow NZ Post
to maintain service levels in the mail operation. We need to
maintain a financially sustainable mail service that will
allow us to continue to deliver mail to New Zealanders
across the country. We will continue to have conversations
with the Government about the future of
mail.”
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