Australia Post’s 1H24 Results
Today we released our 2024 half-year results. While structural headwinds remain, we are starting to see our Post26 strategy deliver some green shoots of recovery, with Group profit before tax of $33.6 million, a $10 million increase in profit compared to 1H23.
Thank you for all your efforts in helping us get here and for your commitment to our customers and communities.
Highlights for the six months to 31 December 2023
- Group revenue $4.71 billion, up 0.6% on same period last year (1H23)
- Group profit before tax $33.6 million, up 42% from $23.6 million in 1H23
- Parcels and Services revenue $3.85 billion, up 1.3% on first half last year
- Letters revenue $857.9 million, down 2.7% on 1H23, with Letters volumes down 11.9% during the same period
- Letters losses of $182.1 million, down 4.0% from 1H23
- Business efficiencies of $140.8 million
This result reflects the seasonal nature of our business, which saw us deliver our biggest and best Peak yet. However, we need to view these results within the context of the year so far, and with the knowledge of what we still need to do.
We are operating a distinct two-speed business
The ongoing decline of our letters business continues to impact our results, with letter losses totalling $182 million for the half. Our Retail and Post Office Network continues to see declining foot traffic and over the counter transactions. Pleasingly though, our Parcels and Services business has seen increased volumes and profit, helped in part by our record Peak. The parcels business operates in a highly competitive environment and we all need to work together to ensure that we are offering the best possible service to win and retain customers.
Our Post26 strategy is delivering
Despite the structural challenges, we are starting to see some green shoots emerge thanks to our Post26 strategy. We’re investing in the right initiatives to transform how we deliver for customers and communities. In the first half we successfully launched Australia Post Metro, our next-day parcel delivery service, we opened new parcel and processing facilities in regional areas such as Avalon and Ballarat, and we have trialled our New Delivery Model in locations across the country, which is freeing up our Posties to deliver more parcels. We’ve refined and simplified our operating model and continue to carefully manage our costs. As a business we are committed to transforming Australia Post into a sustainable and profitable business.
Modernisation remains the key to addressing shifting demands
The reforms announced by the Government in December 2023 are a good first step for us to build a more sustainable business, building on the progress we have made on our Post26 strategy. In the coming months, it will be crucial that we work with the Government and other stakeholders, such as the key Unions, to execute these reforms flawlessly and turn our attention to securing additional reforms that remain vital to our financial sustainability.
We each play a role in delivering a successful FY24
I want to thank each of you for the role you have all played in helping us to get where we are today. As we turn our attention to the remainder of the financial year, we need to continue to focus on delivering the best experience for our customers and keeping our people safe. If you see something that you think needs changing, please speak up. We don’t always get it right, but we all need to work together to build a better Australia Post. There is a world of possibility when we all focus on simplicity, which frees us up to deliver our Post26 priorities.
Look after yourselves and each other.
Be safe, be kind
Paul
