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Australia Post first-half profit soars to $131 million

AUSTRALIA Post’s first-half net profit has skyrocketed to $131 million, up from $16 million a year ago.

Australia Post CEO Ahmed Fahour and Woolworths boss Brad Banducci. Picture: Stuart McEvoy
Australia Post CEO Ahmed Fahour and Woolworths boss Brad Banducci. Picture: Stuart McEvoy

SOLID growth in parcel volumes has delivered a huge boost in first-half profit for Australia Post despite an 11 per cent fall in letter volumes.

The company, which is transforming itself from a traditional postal service to a parcel and e-commerce firm, hiked net profit to $131 million in the six months to December 31, from just $16 million in the prior corresponding period. Chief executive Ahmed Fahour said the result came on the back of domestic parcel volumes jumping 5.7 per cent, revenue jumping 8.2 per cent to $3.5 billion and gains from business efficiency programs.

“Today over 70 per cent of our revenue and 100 per cent of our profit is derived from commercial activities in parcels and e-commerce,” Mr Fahour said in a statement.

“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.” Australia Post’s pre-tax profit also jumped from just $1 million to $197 million in the six months to December 31.

Mr Fahour said modelling shows that if the company had not changed, particularly the letters business where volumes have fallen 11 per cent, it would have accumulated losses of $2 billion and needed a bailout.

Mr Fahour said Australia Post introduced a number of innovations recently including new parcel sorting machines and automated letter sorting machines. He said weekend and evening deliveries, and investing in global parcel and e-commerce giant Aramex, were helping the company grow market share and compete with global rivals.

“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,” Mr Fahour said.

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Original URL: https://www.news.com.au/finance/business/other-industries/australia-post-firsthalf-profit-soars-to-131-million/news-story/14d6850278927fd02cb06dfe138c424d