An Post: strong growth in 2019 but poor forecast

While revenues and profits grew at An Post in 2019 the company expects a drop in 2020 thanks to the impact of the pandemic on mail volumes.

For the full year 2019, like-for-like profits grew 40% as against 2018 and revenues were up 2%. Pre-tax profits grew by 147% from €26.8 million to €66.3 million. This reflected the sale of the One4all GVS business that delivered a €40 million profits – this is excluded from the like-for-like comparison.

The transformation programme in the Irish postal operator is showing positive results in the profits.

Commenting on the financial results David McRedmond, CEO, An Post said: “In 2019 we accelerated the transformation of An Post. The focus on e-commerce saw parcel volumes up 30% over the prior year and the Post Office network is replacing traditional revenues with new products and financial services. Operating costs are shifting into the new areas of growth and the business is strongly cash positive. Management, staff, the unions and the Board have worked together to accelerate the transformation of An Post from an old world of letters and cash into a new world of e-commerce delivery and financial services.

“Our plan for 2020 is for rapid digital development across all services, the move to a new HQ, and the launch of the long-term strategy based on sustainable goals. However, COVID-19 has changed all our lives. An Post is currently solely focused on delivering an essential service across both its networks to serve the people of Ireland and to assist Government. While we expect a negative financial impact from mail volume decline (as many businesses not currently mailing) only partially offset by strong parcel growth, the strengthened balance sheet underpins the Company. The men and women of An Post, together with the Communications Workers’ Union, are determined to deliver on our core purpose: To act for the Common Good”, he concluded.