New Zealand Post profits fall

Thanks to the changes of the business environment, first half financial year profits at New Zealand Post fell to $4 million to $27 million compared to the same period in 2019.

Revenues grew by just $2 million, with a drop of $39 million in mail revenues almost eclipsing the strong growth in parcel revenue, that grew by $42 million. Operating expenditure grew by $28 million thanks to costs associated with an unpredictable growth in parcel volumes.

In a statement New Zealand Post said, “We’ve just delivered another record-breaking Christmas, with an average of 6 parcels being delivered every second across New Zealand. We’re so proud of what our people did to make this happen, and that during this time Kantar measured us as delivering 98% of domestic courier parcels on time.

“Our International business had to be innovative by using more sea freight, setting up different transit hubs, and even chartering planes ourselves to get items to the right place, wherever that may be in the world, as we responded to the impact of the pandemic on freight movements. We will continue to face challenges as the world grapples with the pandemic response with fewer flights entering and leaving the country but will look to minimise the impact on our customers as much as possible.

“In the last six months our Māori leadership programme Te Hononga finished its second successful year, we were also thrilled to receive the Rainbow tick, and we welcomed two new members of our Executive Leadership team, Monica Ayers and Rhonda Richardson.”

There was a spike in letter mail thanks to the General Election in the country in 2020 but letter volumes continued to fall considerably.

“This ongoing decline was acknowledged by the Government in the 2020 Budget, with a Contract for Mail Services of $130 million over three years to allow NZ Post to maintain service levels in the mail operation. We need to maintain a financially sustainable mail service that will allow us to continue to deliver mail to New Zealanders across the country. We will continue to have conversations with the Government about the future of mail.”