Australia Post made $36 million in full-year profit - a turnaround of $258 million compared to the previous year - despite another heavy fall in its postal business.
The parcels business was up eight per cent but addressed letter volumes fell by 9.7 per cent, the largest ever 12-month decline, contributing to a loss in the postal business of $138 million.
"Returning to profit is a pleasing result for our employees, post office operators and our other important stakeholders, and shows that Australia Post is on a more sustainable path for future growth," said Ahmed Fahour, MD & Group CEO.
"The parcels business has performed well despite increased competition from overseas players. We have outperformed in difficult market conditions to post an 8 per cent profit increase.
"Changes to the letters business introduced earlier this year were an important factor in the group returning to profitability. While the letters business is in structural decline, we have reduced our forecast cumulative losses in letters from around $5bn to $1.5bn over the next 5 years.
"Our business is 207 years old, but we are more efficient and motivated than ever before. We have to continue to evolve to remain relevant and sustainable, so we can continue to serve customers and communities everywhere."
Australia Post outlined its year in a press release:
Australia Post today announced a full-year profit after tax of $36 million, representing a turnaround of $258 million compared with FY2015.
- All community obligations, including service performance standards, exceeded for the 16th consecutive year
- Revenue up 3 per cent year-on-year to $6.6 billion
- Parcels business recorded profit growth of 8 per cent due to strong business-to-consumer growth and productivity improvements
- Reduced losses in Postal business but still recorded a significant loss of $138 million driven by a 9.7 per cent letter volume decline
- Continued investment to support Licensed Post Office operators – additional $125 million in annual payments now committed