NZ Post returns to profit

New Zealand Post (NZ Post) has returned to profit after a financial year ‘of two halves’. Hitting $17 million in operating profit in 2019-20 after an operating loss of $55 million in 2018-19, the first half of the financial year produced strong results that offset the pandemic lockdown.

“The return to profit in a year of enormous challenges reflects very positively on NZ Post’s amazing 6,500 people who were proudly ‘essential workers’,” said NZ Post Board Chairman Rodger Finlay.

“To them, I extend the Board’s thanks.”

“As New Zealand’s largest online shopping and mail delivery partner, we were initially hit hard by the Alert Level 4 Lockdown across all our service lines, and we are now well positioned to move forward with confidence,” said NZ Post Chief Executive David Walsh.

“Once restrictions eased as the country moved to Alert Level 3, domestic parcel volumes increased dramatically. However, this came with extra cost, as we had to bring on more people and vans, physical distancing and extra processing sites.”

The 2019/2020 financial results include:

– Strong operating cashflow of $65 million, up from $12 million in 2018/19
– Over 80 million parcels delivered (an increase of 1 million overall, Domestic parcels up 5 million, – International down 4 million, due to COVID-19 response)
– 72 million fewer letters sent this financial year compared to 2018/19

“COVID-19 showed the absolute best of our people; every day our front line was out in communities delivering essential items to New Zealand. It is our people who got us through the massive challenges of unprecedented online demand after Level 4 was lifted. Not only did they help keep New Zealanders connected, but their hard work has also helped support and grow New Zealand businesses, some of which had to quickly start selling online for the first time,” Walsh concluded.