Australia Posts Annual Report shows mail volumes are not falling off a cliff and Post is not going broke
Australia Post released its Annual Report for 2014 this week. The report provides interesting reading.
Figures for the year include:
- Profit after tax $116 million. This includes $63 million on corporate restructuring. Underlying profit after tax was $179.2 million which is up 1.0% on last year. Underlying profit before tax (EBITDA) up by 10.3% to $518.6 million. These figures indicate Post is still in a strong financial position.
- Revenue increased to $6.4 billion, up 8.3% on last year. Revenue was $4.9 billion in 2010.
- Addressed mail volumes dropped 4% last year. This is consistent with the moderate decline expected by the CWU and postal experts. Not 12% as CEO Ahmed Fahour has spruiked over the last few months.
- Domestic parcel volumes up by around 12.8%.
- Parcels and express services earned $337.5 million (EBITA), up 20.8% on last year. Overall parcel revenue growth up by 16.4%. The Australia Institutes argues that the delivery network for letters is also the foundation for the profitable small parcel delivery business. “The way that Australia Post is presenting its financial accounts conceals the relationship between the ‘losses’ made delivering letters and the ‘profits’ made delivering small parcels.”
- $595 million capital investment in future parcels network program. These big investment decisions in parcels and logistics tell us that Post thinks they are going well.
- Retail services earned $175.6 million which is in line with last year’s result.
- Senior executive and director remuneration increased to a whopping $15 million, up from $13 million last year. There are now 409 managers being paid over $195,000 up from 327 the previous year.
- The CEO’s share was $4,631,776. Since starting in 2010 Mr Fahour has been paid close to $12 million. His salary has steadily climbed each year. Last year he was paid a lump sum of $436,829 to "restore the value in the managing director and CEO's original contract as a result of erosion through unexpected impacts of legislation with respect to high value superannuation contributions from February 2010".
The Annual Report shows mail volumes are not falling off a cliff and Aussie Post is not going broke.