An Post sees 2.6% revenue growth in 2020

Revenues at Irish postal operator An Post grew by 2.6% in 2020 by comparison to 2019. Parcel growth of 100% was offset by letter volume decline of 7% and trading declines at the Post Office network brought about by COVID.

Profit before depreciation and amortisation was €33 million but after these factors translated to a loss of €10m.

Q1 of 2020 has seen revenues grow by 11% as against the same period in 2020, with high parcel volumes supported by a recovery in letter volumes. Profits are set to return to pre-pandemic levels in this financial year.

Commenting on the results, David McRedmond, An Post CEO said: “2020 for An Post was all about being a public service. Unlike many postal services in Europe we kept both our networks fully operational throughout the pandemic. While the costs from Covid were a major hit on the organisation, An Post’s strong financial recovery in the previous few years meant the costs could be fully funded from our balance sheet. The revenue growth showed continuing momentum in An Post’s strategy which has accelerated even further in the first quarter of 2021.We have ambitious plans, and the momentum, to grow the business as an essential infrastructure for Ireland.”

Peter Quinn An Post CFO said: “In an unprecedented year of economic disturbance, the sector proved resilient with growth in the top line. The growth in services, 100% plus for e-commerce home delivery is very encouraging for An Post’s business into the future. Generating a positive earnings before depreciation and having the balance sheet strength to deal with the cost demands of ensuring service during the pandemic and forfeiting income from price, demonstrates a powerful resilience in the core business. There is great potential for An Post to play a leading role in the recovery and to generate sustainable earnings”.

 

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