Australia Post delivers solid revenue growth, with eCommerce expected to moderate

Australia Post has announced group revenue for the first half of $4.80 billion, up 10.4 per cent year-on-year, driven by the strongest parcel volumes in Australia Post’s history. The improved Group profit before tax of $199.8 million was underlined by asset sales and revaluations, as well as favourable bond rate movements.

Operational costs, which increased by 13.2 per cent on last year, reflect volume increases and COVID-19 related network constraints, which are likely to continue in FY23.

Capital investment during the period increased to $217.8 million, up $28.4 million on last year. This forms part of the $400 million committed to new parcels facilities, fleet and technology by mid-2022 to help service the growing demand for services, bringing the total committed investment to more than $1 billion over three years. 

“Just like many businesses around the country, we have dealt with unprecedented challenges over the past year, but the ability of our people to adapt during ongoing challenges presented by the COVID-19 pandemic has been nothing short of remarkable,”

The business also committed an additional $20 million in upgrading systems to cloud based solutions over the next year to improve parcel scanning and tracking in the network.

Group Chief Executive Officer and Managing Director, Paul Graham, said the result was a significant achievement given the ongoing disruptions to the business during the COVID-19 pandemic and the necessary network changes required to continue to provide essential goods and services to customers.  

“Just like many businesses around the country, we have dealt with unprecedented challenges over the past year, but the ability of our people to adapt during ongoing challenges presented by the COVID-19 pandemic has been nothing short of remarkable,” Mr Graham said.  

“Together, we worked tirelessly to manage the health and wellbeing of our people, with isolation rules and travel restrictions across different states and territories all carrying different challenges – while our people remained resilient and delivered for our communities.”

While Australia Post experienced the strongest parcel volumes in the organisation's history, eCommerce growth is expected to moderate in the second half of the 2021-2022 Financial Year, while letter revenue will continue to decline over the next six months.