Australia Post – parcel revenues perform strongly

Parcel revenue growth drove Australia Post revenues for the first half of 2020-21 to $4.3 billion, a 15.5% increase on the same period in 2019-20. Letter mail offset this somewhat with large overall losses. Group profit was $166.6 million.

Parcel revenues grew by 25.9% to $3.403 billion, a sizeable portion of Group revenue as volumes grew to the pandemic. Parcel businesses StarTrack and Australia Post Global eCommerce Solutions did very well too, in part thanks to strong growth in cross-border e-commerce.

Letter volumes dropped 13.6% and revenues were down 11%, with the January stamp price increase only partially offsetting the losses. Letters generated a net loss of $74.2 million.

Acting Group Chief Executive Officer and Managing Director Rodney Boys said “The ability of our people to adapt during this intensely challenging period has ensured many businesses across the country have been able to continue to operate and communities have been able to access our services – with Post Offices and delivery services continuing throughout COVID-19,” Mr Boys said.

“The regulatory changes to our delivery services have provided the flexibility to adapt our resources and people to where they are most needed and it has been a credit to our people they were able to respond to suit the rapidly changing consumer needs, with more than 2,000 of our posties moving to parcel delivery to help manage the significant growth in eCommerce, as large and small businesses serviced their customers online.

“Our retail network of more than 4,300 Post Offices continues to provide critical government and financial services, particularly in rural and remote Australia, where Bank@Post remains an invaluable service for communities.

“We had over 107 million customers visit our corporate and Licensed Post Offices across the country in the first half, with 23.7 million visits alone in December, supported by our hard-working Post Office team and Licensed Post Office partners committed to serving the community during this challenging time.

“Following the S&P ratings downgrade in November 2019, whilst still below the profit levels of several years ago, it is pleasing to see year-on-year improvement as we work hard to restore the financial position at the same time as continuing to invest to meet changing customer demands.”