"Once we address some of the issues and losses with the price increase, we need to think of ways to continue to make that business efficient," she said. The drop in profit saw Australia Post pay a $42 million dividend to the government, down 46 per cent on last year. Australia Post's overall profit after tax came in at $40.6 million, and group revenue grew 2 per cent to $6.99 billion thanks to growth in the parcels and services business. A rare opportunity to join Sydney’s global hub for logistics, Commit to operational excellence in the warehouse with a modern WMS, ESR Australia acquires Brisbane industrial estate for $90M, A higher level of warehousing efficiency through increased density, Swinburne and Officeworks skilling students for the future of supply chain, Continued investment program across the operational network – invested $424 million including $300 million CAPEX in robotics and automation and 1000 electric delivery vehicles purchased to support the growing ecommerce market, offering significant safety and environmental benefits, Increased investments were funded from improved operating cashflows, cash grew $36 million, Customer Net Promoter Score up 3 points to 20.5 – a standout performance compared to other logistics operators and retailers. “So for Australia Post to put up a price hike that is so enormous is just tone-deaf,” he said. Add articles to your saved list and come back to them any time. MHD Supply Chain Solutions magazine is Australia’s leading logistics and supply chain management title. We pay respect to Elders past, present and emerging. Don't have an account? "Profit went down $175 million, giving an overall loss of around $190 million. Dominic Powell writes about the retail industry for the Sydney Morning Herald and The Age. Australia Post boss Christine Holgate said its failing letters business was here to stay, despite being blamed for a 70 per cent slide in profits over the past year. Australia Post previously offered national flat rates based on weights, with tiers of 500g, 1kg, 3kg and 5kg. What does Victoria’s State of Disaster mean for supply chains? “Like stamp prices, which are a flat rate no matter how far a letter travels, these new flat rate parcel prices mean we are being fairer to more Australians. Falling letter volumes and no price increases in stamps led to a 9 per cent drop in letter revenues to $2.2 billion from $2.43 billion last year, with Ms Holgate warning the losses would likely continue. Last chance to register for 2019 Manhattan Exchange event, Woolworths partners with Qube for two new state-of-the-art distribution centres. Australia Post chief executive Christine Holgate. To make the service viable, you would have to reduce the service. An Australia Post parcel centre.Source:Supplied. However it also announced a profit before tax of $41 million, down almost two-thirds from last year’s results. Full acquisition of Aramex Global Solutions, now known as AP Global, completed in December 2018 contributing $78 million in additional revenue and giving Australia Post full control of its international commercial arm. Profit before tax of $41.1 million A record peak period, delivering 40 million parcels in December Acquired full ownership of Australia Post Global (APG) Strong domestic parcel growth, with revenue up 9.2 per cent Business efficiency savings of over $250 million It paid a total of $1.3 billion paid in taxes. This letter revenues declined almost 9 per cent to $2,216 million and losses from this business increased to $192 million. Other highlights for the financial year included: ©2019 All Rights Reserved. The price relief measures also include a new price guarantee, which ensures that all size-for-size same city and national parcels are cheaper than Australia Post. If this occurred, the postal service would be loss-making and no longer meeting its Postal Corporation Act obligations, Ms Holgate said, which would lead the government to direct the business to return  to viability. Join the conversation, you are commenting as, news.com.au — Australia’s leading news site. Having posties carry more parcels is one solution AusPost is investigating, along with increased automation and efficiencies in the company's 70,000-strong workforce. “It seems to us this is a very cynical attempt to gouge small business at the busiest time of the year.”. Earlier this month, Australia Post announced a 70 per cent decline in full-year profit to $40.6 million, off the back of a sharp decline in its letters business. “This year we saw record domestic and international parcel revenue as more and more customers are choosing Australia Post as their preferred partner to deliver their ecommerce ambitions,” Christine Holgate,  Group Chief Executive Officer and Managing Director, Australia Post said. Profit after tax was $118 million, down 45%. A NOTE ABOUT RELEVANT ADVERTISING: We collect information about the content (including ads) you use across this site and use it to make both advertising and content more relevant to you on our network and other sites. Australia Post has announced for FY19 record group revenue of $6,990 million, up two per cent. calling for an increase on stamp prices by 10 per cent. "It wouldn't be too hard to imagine on top of this loss you could get a further $175 million.". But for customers and businesses using their own packaging, the new price tiers will apply on a weight basis. Letter revenue fell nearly 9 per cent to $2.22 billion, but total parcel and services revenue grew 7.7 per cent to $4.76 billion. “If It Packs, It Posts is the biggest change Australia Post has made to its parcel products in nearly 30 years. Buying drugs on the dark web is not as harmless as you think, these are the high tech ways the ABF is busting would-be buyers and sellers. Despite trends indicating letters will continue to decline year-on-year, Ms Holgate still believes it will be a billion-dollar business in 2025, and dismissed questions if the company would still need to be state-owned if it mainly operated in the competitive parcel delivery space. Revenue for that segment was up $341 million on 2018, and reported a $103 million boost to profit, which Ms Holgate said was due to Australia Post's domination of the e-commerce market. Australia Post has defended the changes, which include the introduction of a domestic flat-rate product for parcels up to 5kg called “If It Packs, It Posts”, doing away with 256 different product prices based on weight and zone in favour of four flat rates. Secured an agreement with important post office licensees – providing increased payments for parcels and financial services, in addition to upgraded technology. The government-owned company reported a 70 per cent decline in net profit after tax for the past financial year, coming in at just $40.6 million, which it blamed on a significant decline in its letter business. Australia Post boss Christine Holgate has warned losses for the company's letter business could double in the current financial year and force the postal service to close multiple community branches. Strong customer uptake of alternate delivery options – more than 90 million parcels delivered via the Post Office network and increasing use of 24/7 Parcel Lockers in 350 locations and growing. Earlier this month, Australia Post announced a 70 per cent decline in full-year profit to $40.6 million, off the back of a sharp decline in its letters business. Australia Post disputes that figure, putting the weighted average increase at around 3-4 per cent. "We do have a very substantial parcel business and a strong growing services business, and the decision on if it should be privatised or public is one for the government," she said. It insists many customers will actually save money under the new pricing model, which moves from a weight-based to a size-based system for domestic parcels under 5kg using its new packaging. On Monday, average parcel prices at the national postal service rose by 7-8 per cent — roughly four times the rate of inflation — according to rival delivery firm Sendle. “Many of our customers will actually pay less, especially those sending small heavy items and those sending to or from rural and regional Australia,” a spokesman said. “I turned off from Australia Post earlier this year,” she said. Delivery … This full year profit result is in line with that achieved three years ago, although masks the significant transformation from a letter business to a growing delivery and services organisation. It’s understood the changes are aimed at simplifying the post office experience in order to drive volumes and allow staff to up-sell, rather than just increasing prices. Customers have been landed with an enormous price hike by Australia Post, just before the start of the busiest time of the year. The other thing was that to achieve slightly better pricing on those parcels you have to buy in bulk. Donald Trump posts 60 Minutes interview ahead of final debat... Australia Post: Employee takes cheeky gibe at CEO Christine ... Big problem with Australia Post CEO Christine Holgate’s succ... Christine Holgate: Aus Post CEO flashes $48,000 watch. To prevent this, the company is calling for an increase on stamp prices by 10 per cent, something Ms Holgate is hoping will flow through in the first half of the financial year. This model is already used in New Zealand, the US and Canada.”, To join the conversation, please Log in. Australia Post warns of post office closures as letter losses spiral. Australia Post acknowledges the Traditional Custodians of the land on which we operate, live and gather as employees, and recognise their continuing connection to land, water and community. When compared to the previous pricing for the same weight tiers, the increases are significant. “These changes will impact individuals and micro/small businesses that send their parcels over the counter in a post office or buy prepaid satchels via Auspost.com.au,” the spokesman said. The government-owned company has previous warned that “for every $1 of letters revenue we lose, we need to find $2 of parcels revenue”. “We also believe we’ve touched over half of Australian households. Parcel revenue of $3.5 billion and letter revenue $2.4 billion. The Community Representation contribution will enable customers to continue to conduct essential banking transactions in 3,500 Post Offices across Australia using the Bank@Post service.” Australia Post's overall profit after tax came in at $40.6 million, and group revenue grew 2 per cent to $6.99 billion thanks to growth in the parcels and services business. Domestic parcel revenue was up 9 per cent and international parcel revenue was up 16 per cent. Sign up, Join the conversation, you are commenting as Logout. NSW Opposition demands for documents cost taxpayers $1.4 mil... Find out more about our policy and your choices, including how to opt-out. Australia Post has been accused of gouging small businesses with the “biggest hike in three decades” to its parcel prices, just before the start of the busiest time of the year. Dividends up 57% to $79 million. All times AEDT (GMT +11). “The prices were becoming something I couldn’t sustain. Disposal of 10 per cent stake in Aramex parent for $228 million, reducing exposure to risk. To piggyback off the price hikes, Sendle has announced a suite of price relief measures it has dubbed a “small business relief package”, with international delivery rates dropping and its 2kg parcel increasing to 3kg. However it also announced a profit before tax of $41 million, down almost two-thirds from last year’s results. “That’s the equivalent of going from here to Pluto,” Mr Chin-Moody said. In terms of cashflow for a small business it wasn’t sustainable.”. Jacinta Taylor, owner of Melbourne-based online business The Laminated Cotton Shop, sells eco-friendly versions of disposable or plastic household items like waterproof bags, placemats and aprons. Australia Post annual profit $134 million, up 41%. Mr Chin-Moody noted that small businesses were “actually doing it tough” compared with the broader retail sector. Nationwide News Pty Limited Copyright © 2020. Minchinbury Australia Post 24/7 parcel pick-up lockers. This letter revenues declined almost 9 per cent to $2,216 million and losses from this business increased to $192 million.