Highlights for six months to 31 December:

  • Group profit before tax up from last year's result of $1 million to $197 million
  • Parcel profit up 16 per cent to $189 million
  • Postal losses reduced to breakeven - $600 million in losses avoided so far due to reform
  • Payments to Post Office operators up another $26 million or 13 per cent
  • 9,800 people redeployed to roles in growth areas of business as part of Post People 1st program

Australia Post today reported a profit before tax of $197 million for the six months ended 31 December 2016.

The strong half year result benefitted from solid parcels growth, with domestic parcel volumes up 5.7 per cent and overall EBIT growth of 15.6 per cent, as well as continued benefits from business efficiency programs.

Group revenue increased by eight per cent year-on-year to $3.52 billion for the half and all performance indicators, including on-time delivery for letters and parcels, were met or exceeded.

Managing Director & Group CEO Ahmed Fahour said this result demonstrated the strategy the business embarked on has returned Australia Post to sustainability, with the transformation to a parcels and ecommerce-centric business taking hold.

"Today over 70 per cent of our revenue and 100 per cent of our profit is derived from commercial activities in parcels and ecommerce," Mr Fahour said.

"This is one of the strongest first half results in recent history and it demonstrates that we are on the right path to ensuring the future of Australia Post for our people, the community and our important stakeholders.

"We are delivering more parcels than ever before, with domestic parcel volumes up 5 per cent in the first half, market share increasing and at the same time we're trialling new delivery innovations like evening and weekend deliveries to give our customers an even better experience.

"On top of the investment in new parcel sorting machines last year, in the past six months we have installed new automated sorting machines at our major letter facilities and launched a new air freight domestic parcels network.

"We are also responding to global competitors entering the local market by investing in the future. Last year we made a strategic investment in global parcels/ecommerce giant Aramex and we are already reaping rewards in growing our inbound and outbound parcel volumes."

Letter volumes declined a further 11 per cent in the first six months, with cumulative losses in the letters business stabilising. Without changes to the letters business introduced early last year, independent modelling suggests this loss would have been over $2 billion today.

"Through the important postal reform program, we have avoided the need for a multi-billion dollar rescue package. It has also meant we have kept our people in meaningful employment while returning a dividend to the Federal Government".

"It's important we continue to focus closely on making sure our business is running as efficiently as possible, especially as we head into what is traditionally a much more challenging second half. We forecast the full year 2016/17 profit result will be better than 2015/16." Mr Fahour added.

Australia Post will release its full year results in September 2017.

Ends –

Commercial performance

H1
FY17

H1
FY16

% change

Revenue

$3,516m

$3,251m

+8.2%

EBITDA

$369m

$178m

+107%

Profit before tax

$197m

$1m

>100%

Profit after tax

$131m

$16m

>100%

Addressed letter volume declines

-11.0%

-9.5%

-1.5%


CSO performance standard

H1
FY17

Target

Street post boxes

15,260

10,000

% of letters
delivered on time

98.5%

94.0%

POs nationwide

4,389

4,000

POs in rural & remote areas

2,544

2,500

% of points to receive deliveries 5-days-a-week

98.8%

98.0%