NZ Post returns to profit as mail volumes fall
The result comes after a major multi-year transformation project.
New Zealand's state-owned postal service, NZ Post, has returned to profit with a $17 million net profit for the year, despite a decline in mail volumes. This marks a significant turnaround from the previous year's $2 million loss. The company's success is attributed to a multi-year transformation project that included updates to its mail network and processing systems.
However, the number of parcels delivered fell by about 3 million to 85 million, while letters delivered dropped to 134 million from 158 million the previous year.
NZ Post Chair Dame Paula Rebstock expressed satisfaction with the results, stating that it marked an important milestone in the business transformation. She emphasized the disciplined execution of the company's strategy and its commitment to strengthening its commercial position while delivering value to customers. The board remained focused on supporting sustainable performance, disciplined investment, and long-term value creation, according to Dame Paula.
The state-owned company declared a dividend of $12.5 million, with State Owned Enterprises Minister Simeon Brown welcoming the improved financial performance. However, Brown highlighted the need for parcel revenue to improve in a competitive market, noting that the company's return on equity of 2.9 percent remains below its cost of capital. Group revenue growth for the year was 3.6 percent.
Looking ahead, NZ Post must continue to optimize its operations to enhance overall profitability and performance while delivering an efficient and sustainable service, according to Brown. He reiterated the importance of state-owned enterprises operating efficiently, maintaining strong balance sheets, and returning value to New Zealanders.
Written by urgent.news from RNZ Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
