Australia Post contributed A$6 billion to the national economy last financial year and created tens of thousands of additional jobs across the nation, a report from Deloitte Access
Economics has found.
The report, released last month, found that Australia Post facilitates 82% of Australia's booming A$14 billion eCommerce market and that 80% of Australians see no convenient alternative for receiving parcels other than through the post office.
According to the report, 92% of Australians visited a post office in the previous six months and highlights the tremendous social value they place on the postal service, with 79% saying Australia
Post ensured equity of access to core services for all communities.
Australia Post’s Group CEO and managing director, Christine Holgate, welcomed the report’s findings, saying post offices are well placed to help provide a range of vital community services on behalf of organisations, such as the government and banks, and to help local businesses grow.
Australia Post last week announced a full-year profit after tax of A$134 million, up 41% on FY17. The result was underpinned by strong parcel volume growth, both domestically (B2C up 10%) and internationally (up 19%), and a range of efficiency measures across operational and support functions. Together this helped offset the impact of an 11% volume decline in the important domestic letter business.
Major investments to further optimize services
Commenting on the results, Ms Holgate noted that "In parallel with letter volume decline, many of us are paying our bills online and large organisations are withdrawing from regional towns. This puts further pressure on our local post offices to serve these communities with important services, including financial transactions. These growing services require investment and increased funding to ensure we can meet communities' needs."
As a result, Australia Post is investing in capacity and efficiency in major processing parcel facilities and across its delivery network, with over A$300 million of investment in FY18 and A$500 million forecast in FY19.
Australia Post has forecast there will be greater pressure on profitability in the 2018/19 financial year due to the continued decline in letters and caution around domestic and cross-border retail conditions.
Nol van Fenema