NZ Post has announced a net profit after tax of $27 million for the half year with record-breaking volumes of parcels.
Its operating profit was $9m and including its share of earnings from Kiwi Group Holdings Limited (which recorded an $8m profit increase) this resulted in NPAT of $27m, down from $31m for the same period last year.
A $2m increase in revenue includes a $42m increase in parcel revenue and a $39m decline in mail revenue. There were 32.2 million fewer letters sent for the period, down 18%.
An increase of $28m in operating expenditure came from costs associated with increased and unpredictable COVID parcel volumes.
NZ Post chief executive David Walsh says the volume growth and increasing trend of shopping online shows the business “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,” Walsh says.
“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,” he says.
Other highlights for the company included finishing its second year of the Te Hononga
Māori leadership programme and receiving the Rainbow tick. It also welcomed Monica Ayers and Rhonda Richardson as two new members of the executive leadership team.
During the first six months of the financial year, NZ Post also 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,” Walsh says.
