NZ Post has recorded a net profit after tax of $60 million for its half year result on the back of record parcel volumes.
This was up from NPAT of $27m for the same period last year and included a strong half for its share of earnings in Kiwi Group Holdings for the six-month period.
The Christmas season saw a record-breaking average of nine parcels being delivered a second.
Online shopping in New Zealand grew 38% for the period compared to the same period in 2020 and the company expects this growth to continue.
However, the company continues to see an ongoing decline in the volume of mail. There were 23.9 million fewer letters sent (a 16% decrease), with a $7.1m decrease in mail revenue.
“We are extremely proud of how our people have responded, which has kept New Zealand connected during these uncertain times and helped many Kiwi businesses to generate revenue where they might otherwise have not been able to,” NZ Post chief executive David Walsh says.
“NZ Post is committed to continuing to support New Zealand business and we’re pleased to be able to invest in our future, to meet the growth in online shopping,” Walsh says.
“We are well on track with those investments to increase our parcel processing capacity, with new sites and smarter technology. The first two new sites, Wellington and Christchurch, will become operational through the middle of 2022.
“The growth in profit generated from parcel delivery is very encouraging. To, achieve this we had to scale up to meet the record volumes and we brought on more people, vans, secured additional property and increased our flight capacity. While these increased operating costs have been absorbed currently, they will need to be recovered if the disruptions being experienced continue.
“We are continuing to see a significant decline in mail volumes, with revenue from mail declining $7.1 million compared to the same period last year – NZ Post is working towards long term financially sustainable solutions for mail, from further price increases, changes to our operations, and associated costs,” Walsh says.
NZ Post half year financial results:
- A net profit after tax (NPAT) of $60m (including its share of earnings from Kiwi Group Holdings Limited) compared to NPAT of $27m for the same period last year
- $24m earnings from its parcels business compared to $12m for the same period last year
- 23.9 million fewer letters sent (a 16% decrease), with a $7.1m decrease in mail revenue
- 52.7 million parcels delivered in the last six months and a record-breaking 19.1 million parcels during November and December
- NZ Post continued its partnership with the Ministry of Health to deliver COVID-19 vaccines across New Zealand
