The first year of the New Zealand Post Group¹s five-year strategy has
yielded an improved operating performance in 2014.
The ‘Delivering our Future¹ refreshed strategy, announced last year,
aims to transform the Group in response to falling letter volumes and
profit growth opportunities in financial services and parcels.
The Group¹s reported net profit after tax (NPAT) for the year was $107
million. The corresponding figure from the previous year was $121
million which was bolstered by a gain of $72 million from the sale of
Datacom.
Will almost all of the profit came from Kiwibank, the State Owned
Enterprise also noted returned from growth in the parcels and logistics
business.
A dividend of $5 million was returned to the Government.
Group chief executive Brian Roche says the better operating performance
was an encouraging validation of New Zealand Post¹s strategy so far, as
the group starts to rebuild sustainable profitability.
Transformation from a traditional postal service business would
continue and New Zealand Post expected to make further progress this
year.
Roche said overall, the delivery services (mail and logistics) business
had performed well in 2014 and improved its contribution, in a year that
marked a historic shift in revenue mix.
³For the first time in New Zealand Post¹s history, revenue from
packages and parcels has exceeded revenue from letters,² Roche says.
³This marks a significant moment for us and reinforces the need to make
the changes we have embarked upon.²
³We will continue to invest in an integrated parcels, logistics and
letters business, move non-corporate retail outlets to a ‘store within a
store¹ basis and seek parcel growth and ecommerce opportunities as
letter volumes drop further.²
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