Australia Post's profit is up 40% as parcel deliveries soar

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  • Australia Post annual profit $134 million, up 41%.
  • Parcel revenue of $3.5 billion and letter revenue $2.4 billion.
  • Dividends up 57% to $79 million.

Australia Post announced a 41% rise in full year profit after tax to $134 million, driven by growth in parcel revenues.

Parcel volume grew in Australia by 10% and internationally 19%. This helped offset a 11% fall in letter volume domestically.

Parcel revenue was $3.5 billion, letter revenue $2.4 billion and other businesses contributed $1 billion.

“While this result was pleasing it demonstrates the business has a significant challenge ahead as it continues to transform,” says CEO Christine Holgate.

“Although we continue to optimise our delivery network, we require $2 of parcel revenue to mitigate the impact of every $1 decline in letters.”

Holgate says there will be greater pressure on profitability in the 2018-19 financial year from the continued decline in letters and caution around domestic and cross-border retail market conditions.

She joined Australia Post in September last year after nine years as CEO and managing director of Blackmores, the vitamin company she led to success in China.

Australia Post paid $593 million to the federal and state governments, through dividends of $79 million and taxes of $514 million.

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