Annual results FY22
I am pleased to share with you our annual results for financial year 2022.
Our headline results
Performance for the full year to 30 June 2022:
- Group revenue $8.97 billion, up 8.5 per cent from FY21.
- Group profit before tax $55.3 million, down 45.1 per cent from $100.7 million in FY21.
- Letters losses increased to $255.7 million, up 24.3 per cent from FY21.
- Parcels and Services revenue $7.2 billion, up 11.0 per cent on last year.
Following a record first half revenue driven by lockdowns in NSW and Victoria, parcel volumes returned to normal growth rates in the second half of the year.
Our Parcels and Services revenue increase of 11.0 per cent is a strong result in a highly competitive market. While we continued to deliver for customers and the community, we experienced significant cost increases related to COVID restrictions and labour shortages that impacted our ability to turn this increased revenue into profit.
Some important points worth noting in these results include:
- In 2021, we secured market-leading enterprise agreements for more than 30,000 Award level team members. In addition, Australia Post will pass on the higher of three per cent or CPI each year for the second and third years, announcing a 6.1 per cent increase in July this year in line with CPI.
- We invested $427 million in new parcel facilities, fleet and technology to help service growing demand, bringing the total committed investment to more than $1 billion over three years.
- We also invested an additional $17.1 million into the Licensed Post Office Network, bringing the total paid in FY22 to $536.6 million, supporting the role of Post Offices in communities across Australia.
Outlook for the year ahead
With falling letter volumes and increasing delivery points to service, we expect losses in this business will continue into the future. Even with the 2021 Census and record Federal election volumes, letters revenue still declined. The typical household today receives only one letter every two days. While it’s clear more Australians are buying goods online following the pandemic, we also don’t expect to see the same level of eCommerce growth ongoing.
Yesterday we provided a draft notification to the Australian Competition and Consumer Commission (ACCC) proposing to increase the Basic Postage Rate (BPR) from $1.10 to $1.20, effective January 2023. The proposed increase would be the first since January 2020, and will help ensure Australia Post can continue to deliver sustainably and we can continue to serve our communities, especially in remote and rural areas.
Our Post26 Strategy and Our AP Way lay out a clear plan of action to ensure we can meet these challenges. Together we will transform Australia Post to deliver a better tomorrow and be the preferred choice for eCommerce, digital, mail and retail services for our customers and communities.
This will involve focusing on driving productivity gains and reducing costs, while continuing to invest in our network and technology, to better meet the needs of our customers.
Thank you
Despite our challenges, this is a solid result. I am immensely proud of how all of you have met the challenges of a global pandemic and continued to deliver essential services to all Australians.
Thank you for adapting to all the changes we’ve needed to make to keep you safe while continuing to provide essential goods and services to customers. The whole of Australia Post has continued to stand up and deliver. Your efforts to achieve this result have been remarkable and I thank you all for your resilience and your willingness to get the job done for our customers and communities.
Be safe, be kind.
Paul
An update on our FY22 result
For more on our annual results and outlook watch Paul’s video.
