Austrian Post today announced final financial results for 2017 and presented plans to invest €50 million in its parcel network this year as it works on a programme to double sorting capacity by 2021.
“Our objective is to expand existing sorting capacities as quickly as possible. We want to maintain our positioning as a reliable company in the future, and continue to keep the focus of our operations geared to quality and reliability”, commented CEO Georg Pölzl.
CFO Walter Oblin told analysts that the company expects its parcel volumes to grow from 97 million items last year to about 150 million by 2021, “even in the case of partial own delivery by individual large-volume shippers”, which was presumably a reference to Amazon. Austrian Post wants to double parcel sorting capacity to 100,000 parcels/hour in an expanded network, he added.
According to the CFO’s presentation, the postal operator will invest more than €50 million this year in various projects, including the construction start for two new parcel depots, at Hagenbrunn, close to Vienna, and Karlsdorf, close to Graz. In addition, seven existing parcel centres across the country will be expanded over the next few years.
Austrian Post also wants to double the number of self-service parcel solutions in the medium-term. In 2017, more than 2.2 million parcels were collected from its 308 pick-up stations (parcel lockers) and over 1.6 million from 23,662 pick-up boxes, while customers handed in more than 3.9 million parcels at 376 drop-off boxes, the presentation also showed.
In 2017, Austrian Post increased adjusted turnover by 2.3% to €1.94 billion and operating earnings (EBIT) improved by 2.7% to €208 million. Mail & Branch Network revenues dropped 2.1% to €1.45 billion on lower volumes but earnings improved slightly to €290 million.
The Parcel & Logistics division saw its revenue increase by 17.7% to €496 million as volumes soared by 20% to 97 million items, thus increasing Austrian Post’s overall market share (by volume) from 45% to 47%. Operating profits rose substantially to €43 million.
“The intensification of logistics synergies between the mail and parcel businesses positively impacted earnings during the reported period. About 52 % of all parcels were delivered by letter mail logistics in 2017, and this share is expected to increase in the future,” Austrian Post noted.
