A pandemic-driven surge in online shopping during COVID shutdowns and a busy Christmas period helped Australia Post report the highest volume of parcel deliveries in its history.
On Wednesday, the National Postal Service said its revenue for the six months to the end of December rose 10.4% to $4.8 billion. This was entirely due to a 13.6% increase in its parcels and services division, which recorded revenue of $3.87 billion.
Australia Post has struggled to keep pace with deliveries amid record parcel volumes, but the letter business continues to falter.Credit:Jason South
The increase in parcels has been offset by the struggling letter trade, which has been in decline for years, with Australians sending fewer and fewer letters. Revenue for the division fell 1.2% to $935 million for the half and posted a loss of $69.9 million.
Despite this, Australia Post’s overall profit rose 20.3% to $199.8 million for the period – although the company said the gain was largely due to asset sales, property revaluations and favorable bond movements rather than a direct improvement in its operating performance.
Costs rose 13.2%, reflecting pressure on the Postal Service from record parcel numbers and the Delta and Omicron outbreaks, which forced thousands of staff into self-isolation and caused a labor shortage.
Australia Post boss Paul Graham said the result was strong given the continued disruption to operations caused by the pandemic.
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“Like many companies across the country, we have faced unprecedented challenges over the past year, but the ability of our employees to adapt to the current challenges presented by the COVID-19 pandemic has been simply remarkable,” he said.
Head office costs were down $17.2 million in the six-month period, although overall expenses for the organization were up 10.2%, again due to COVID-related issues.
