NZ Post have reported a net profit after tax of $13 million for the 12 months to 30 June 2018 (FY 2018). This represents a year-on-year decline of $14 million on the FY 2017 result for continuing operations.

The core business (excluding Kiwi Group Holdings) reported a net loss of $39 million, resulting from ongoing and significant letter volume decline.

NZ Post Chief Executive David Walsh said the expected decline in letter revenue has proved very challenging for this year’s results.

“NZ Post typically now delivers 1.2 million fewer letters every week which led to a significant financial impact, as we continued to operate a nationwide network for New Zealanders.

“Our business continues to make commercial decisions in response to the changes in the postal services market, and in doing so we are very conscious of those who rely on our letter services. As a State-Owned Enterprise we take our social responsibilities very seriously, balanced with the need to operate a sustainable business that provides value to all New Zealanders.

“If the current rate of letter decline continues, in four years’ time we can expect to be delivering half of the volumes that we do today. We are responding to the reduction in demand in a number of ways so this service can be maintained for communities and businesses alike.”

Key points in FY 2018, compared to the same period last year (FY 2017) include:

  • Over 63 million fewer letters delivered – representing 12% volume decline and 11% revenue decline
  • Over 7 million more parcels delivered – representing 10% volume increase and 7% revenue increase
  • Revenue from operations of $877 million, down 2% – attributable to the decline of letter volumes, not fully offset by growth in parcels
  • Expenditure of $930 million, up 5% – mostly attributable to supporting growth in parcels

Meanwhile, promising growth in parcels volume continues, especially in the business to consumer market, said Mr Walsh.

“Ecommerce is providing NZ Post significant opportunities and record volumes, as this year we delivered 77 million parcels for customers.”

The areas for focus for FY 2019 will be to continue to take advantage of opportunities for parcel growth and improving our customer experience. Clearly a priority will also be to look at ways to maintain our obligations for the letters service, Mr Walsh said.

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