Profits were up in a large part due to strong parcel growth – domestic B2C parcels were up 10% and international parcels saw a 19% rise. Efficiency measures across the organisation also helped offset a decline in letter mail volumes of 11%.
98.5% of letters were delivered on time – above the 94% target – and it maintained 4356 post offices across its network, above the 4000 target.
Australia Post’s Group Chief Executive Officer and Managing Director Christine Holgate was positive about the result but aware of the work ahead of the organisation: “While this result was pleasing it demonstrates the business has a significant challenge ahead as it continues to transform. Although we continue to optimise our delivery network, we require $2 of parcel revenue to mitigate the impact of every $1 decline in letters.
“In parallel with letter volume decline, many of us are paying our bills online and large organisations are withdrawing from regional towns. This puts further pressure on our local post offices to serve these communities with important services, including financial transactions. These growing services require investment and increased funding to ensure we can meet communities’ needs.
“As Australia’s most trusted delivery partner, facilitating 82 per cent of the nation’s eCommerce, we are uniquely placed to take advantage of a number of growth opportunities. This includes serving our business & government customers better, rejuvenating the role of the post office in the community, focussing on the significant international opportunities, and creating and simplifying our products that people value and trust.
“To build world-class experience we are investing in capacity and efficiency in major processing parcel facilities and across our delivery network, with over $300 million of investment in FY18 and $500 million forecast in FY19.
“We are proud that Australia Post plays such an important role in our country, contributing over $6 billion to the economy. For every role we employ, we secure another in Australia including two in regional and rural areas. Our trusted brand and posties are loved by Australians. Around 91 per cent of Australians have visited a post office in the last six months, on an average of 10 times, with 85 per cent of Australians saying it was very important their local post office remains.
“To help keep all our people safe, including our posties, we will invest an additional $30 million in skills, tools and capabilities. We will reduce the number of motorcycles on delivery routes where other transport is safer, such as three-wheeled electric delivery vehicles and electric bicycles.”
