Online shopping underpins NZ Post profit growth
NZ Post has reported a massive boost in profit for the year, buoyed by strong growth in its parcel segment due to consumers shopping online during extended Covid-related lockdowns.
“This revenue growth was driven by volume increases, including lockdown-related volume surges and large peaks of online spending during holiday and event shopping days,” said David Walsh, CEO of NZ Post.
The profit was also affected by its share of the profit from Kiwibank, however NZ Post’s stake is soon to be sold to the Crown.
For the year to June 30, the postal service’s tax-paid earnings climbed to NZ$102 million (A$91.6 million) – a $70 million increase over the previous year.
The business delivered 93 million parcels in the year to June, accounting for $658 million in revenue – up by 8 million parcels and $137 million in turnover from the previous year.
Standard mail income declined to $45 million as letter volumes fell. The business delivered 238 million letters during the year, a reduction of 36 million letters on year.
NZ Post’s direct costs increased during the year as a result of processing and delivering an unusually large volume of parcels while also employing more people to work on sites and transport.
Walsh said the next couple of years will be “extra challenging” as it expects rising costs and a tight labour market will impact earnings.
The business opened a Christchurch Processing Centre last month and a new Wellington Super Depot is scheduled to be open next month.