Australia Post half-year profit $197 million after strong parcels growth

OUR love of internet shopping is helping turn Australia Post’s fortunes around, with the 208-year-old organisation posting a strong half-year profit of $197 million.

Australia Post is bouncing back. Picture: File

AUSTRALIA Post’s half-year profit has risen to $197 million — up from last year’s slender $1 million — as the 208-year-old organisation’s turnaround gains traction.

The profits in the crucial growth division, parcels, shot-up 16 per cent to $189 million.

The dying letters division, which is being replaced by Australians love of emailing, saw volumes fall 11 per cent.

Despite this the letters division still broke even, an improvement after last year’s $126 million loss for the half.

Australia Post managing director and CEO, Ahmed Fahour. Picture: Stuart McEvoy

Under fire Post chief Ahmed Fahour, who a fortnight ago was criticised by Prime Minister Malcolm Turnbull for his $5.6 million wage, said the reform process around the organisation was working.

The growth of parcels to overseas destinations is at about 10 per cent while the growth of parcels into Australia is at a whopping 41 per cent.

Mr Fahour has embarked on a strategy of tilting the organisation to become a major parcel carrier which cashes in on Australia’s love of buying and selling online.

We are sending less letters but more parcels, forcing Australia Post to change tack. Picture: Justin Lloyd

The results comes after major competitor, the giant Japan Post, which brought the Toll business to break into the Australian market, revealed it was cutting jobs amid a tough environment.

Mr Fahour said company’s such as Japan Post and Singapore Post were finding it tough competing against an emboldened Aussie Post.

“We can focus on really competing against these people — the reason they are going backwards is we are growing market share.”

“They thought they were going to smash us, they threw everything at us in the last couple of years and not only have they not done that, we have grown our business.”

“By any measure this is an incredible result.”

“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.”

Australia Post has redeployed 9800 staff, it says in a bid to save jobs.

Mr Fahour said over 70 per cent of the revenue and 100 per cent of the profit is derived from commercial activities in parcels and eCommerce.

“We are delivering more parcels than ever before, with domestic parcel volumes up 5 per cent in the first half (and) market share increasing.”

He said Post was had redeployed 9800 people into profitable divisions so as to minimise job losses.

Mr Fahour said the joint venture in Singapore with Dubai based logistics company Aramex was boosting the company.

“We are already reaping rewards in growing our inbound and outbound parcel volumes.”

“Cross border eCommerce is the next opportunity to grow Australia Post.”

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