An Post Group posts a profit from improved trading and cost cuts
30 April 2015
- An Post increased its Group turnover to €820.6m, an increase on the 2013 figure of €811.7m, as a result of revenue growth across the Group.
- The Group achieved an operating profit of €5.9m and an overall profit of €24.2 million for the financial year, compared to an operating loss of €11.4m in 2013 and an overall profit of €5.9m.
- Operating costs were reduced to €814.7m, down from €823.2m in 2013
- Change and cost reduction programme targets achieved including a further 217 FTE staff reduction across the core Company.
- €40m Mails Automation Programme completed.
- Regulatory accounts for 2014 show losses of €38m in the regulated USO mails area. While this is significantly less than the previous year’s loss of €55m, the shortfall continues to be subsidised by other areas of An Post’s business.
- Mails Price Cap mechanism agreed, giving certainty on pricing
- Domestic contract parcels and packets volumes grew by 6 per cent year on year while traditional letter volumes fell by 3.3 per cent.
- The Retail business continued to develop new revenue streams and maintained profitability; the State Savings Fund on behalf of the NTMA is now over €19bn, representing 17% of the personal savings market in Ireland.
- Company’s plan to address the Pension Minimum Funding Standard was accepted by the Pensions Authority.
- Quality of Service targets achieved and ongoing investment in business and personal service across Mails and Retail operations.
In 2014, mails revenue totalled €521m, up from €511m in 2013; Retail revenue was €167m broadly in line with the previous year’s total of €169m, as were related Group products and services at €119m.
An Post Chairman, Christoph Mueller said that An Post remains focused on efficiency, productivity and innovation, while simultaneously working on a range of strategic initiatives that all relate to changing, growing and reforming the business:
“We are doing this in the long-term interest of communities across the country. The shift in customer behaviour towards faster, cheaper and more convenient communication and transactions is driving the evolution of our postal and financial services. Our five year plan is based on continuing to innovate in the provision of new products and services, optimising our Quality of Service, improving cost competitiveness as well as continued employee engagement”, he added
An Post Chief Executive, Donal Connell said that while it was very satisfactory to report an increase in Group Revenue to €820.6m and an operating profit of €5.9m during 2014, it had been another year of significant challenge and change as the core Company continued to adapt in order to stay relevant to customers:
“We have made significant progress in this regard. There is no doubt that mail volume decline is now well established, albeit at a slower rate and we must continue to align business strategy, including our staff numbers, with this reality.
“Government policy in relation to the role of the Post Office will be an important determinant of strategy in the coming years. While we continue to invest in aspects of the business that have the potential to generate revenue, the retail network faces many challenges including significant price pressure on bill payment revenues, competition from alternative payment networks and that low growth-potential of current Government business. As we have said before, we believe that An Post has a key role to play in the provision of a Basic Bank Account, in the context of financial inclusion”, he added.
At year-end 2014, An Post’s post office network stood at 1,140, compared to 1,147 in 2013. During the year, An Post transferred five of its 57 company-run post offices to the contractor-operated model and of the 20 post offices contracts that became vacant, 18 were advertised and renewed. In addition, 38 large-scale post offices were either substantially refurbished or relocated to new, improved premises within their vicinity or town.
An Post also established new postal facilities in a number of delivery service units aimed at servicing neighbouring firms and SMEs who visit these depots to post and collect mail items.
‘Post & Pay’ facilities offering convenient postal and bill payment services are also being piloted in large retail outlets, bringing accessible posting opportunities to locations where large numbers of customers are opting to shop and do business.
An Post continues to engage with Capita, the Postcode Management Licence Holder and to work closely with all the parties towards the effective and successful implementation of the new eircode system.
