Australia Post earned a record pre-tax profit of $592.2 million (€293.92 million) in 2007/08representing an increase of 5.4% compared to the previous year, according to the corporation’s
Annual Report.The record financial result underlined the strength of the postal corporation, with revenuegrowth in all three of its core business areas – letters, parcels and retail – boosting overallrevenue by 5.3% to $4.96 billion (€2.46 billion), the organisation said in a statement.
Out of Australia Post’s three core business areas, the letters business has traditionallybeen the major contributor to the corporation’s revenue and profit. Over recent years, however, theparcel and logistics business has surpassed the letters business in terms of its contribution tothe corporation’s profit. This was, again, the case in 2007/08, with parcels and logisticscontributing $246.4 million to the bottom line. By comparison, the letters business made a profitof $148.5 million, while the “agency services and retail products” portfolio contributed $86.5million.
Managing Director Graeme John said he was pleased with Australia Post’s performance in2007/08. “We achieved consistently strong financial and service performance outcomes across allthree core business areas. Our parcels and logistics business performed well, with volume andrevenue growth across all of our domestic and international parcel delivery services. We alsoexpanded our international logistics capability during the year by opening our first facility inNew Zealand and by developing Sai Cheng Logistics, our joint-venture partnership with China Post.”
Australia Post’s Annual Report 2007/08 also indicates that letters continue to be a vitalform of communication in Australia with the volume of domestic letters increasing by 2.0% whichrepresents the strongest growth in letter volumes since 1999/2000. Total mail volumes grew by 1.6 %to 5.61 billion items, which is the strongest increase in letter volumes since the 1990s. Domesticparcel volumes also increased by 1.9%.
Australia Post also met or exceeded all of its community service obligations during2007/2008. This includes on-time or early letter delivery of 95.9 % which is well above its 94%target and 96.7% on-time parcel delivery.
Australia Post’s Chairman, David Mortimer, said these results underline the continuingstrength of the postal corporation as it prepares to celebrate its bicentenary in 2009. “Theseresults prove the fundamental strength of our business. We again delivered quality customer serviceto all Australians while achieving healthy financial returns.”
