An Post Returns to Growth and Profit in 2017

1 January 0001

• Revenue of €840m, up 1.2% on 2016
• Profit of €8.4m vs 2016 loss of €12.4m and forecast loss of €61m
• Profit before taxation of €49.6m (€15.7m loss in 2016) includes property sale
• Relaunched parcel service delivers volumes up 30% on prior year
• Restructuring reduces headcount by 333 FTEs (Q1 2018)
• Cost-oriented pricing restored with €1 stamp, and breakthrough international ‘Terminal Dues’ Agreement

The Company has seen a substantial turnaround as it returns to profitability and growth in 2017.  The mid-year price increase to a €1 stamp, and massively increased parcel volumes offset traditional mail volume decline from e-substitution bringing revenue back to 2008 levels.

With a loss of €12.4m in 2016, New Era and PWC had forecast losses of €61m for An Post in 2017 if radical action were not taken. The mid-year price increases (20% average increase) combined with a reduction in costs and increased parcel revenues delivered a profit of €8.4m in 2017. Including gains from the sale of Cardiff Lane and a refinancing dividend from Premier Lotteries Ireland DAC of €9m, An Post had a profit before taxation of €49.6m in 2017.

An Post also undertook a major strategy review with McKinsey & Co which sees the company split into its two major businesses, the Mails & Parcels Service and the Post Office Network. As part of the restructuring, the management team has been reduced from 11 to 6 executives.

Highlights of the year include the relaunched and redesigned parcels service, resulting from a close collaboration between management and the Communications Workers’ Union (CWU). The extension of the delivery service to Saturdays and late-night cut-offs has allowed An Post to regain significant share of the burgeoning parcels market and achieve 30% year-on year volume growth. An Post is rapidly growing share with key UK and international e-commerce brands as a trusted partner for both the shipper and the shopper.

The exceptional stamp price increase in April 2017 brought An Post up to the EU average stamp price. The 38% headline increase (20% average increase across all products) saw mail volume decline run-rate go from -7% (prior to increase) to -9.5%, a more favourable outcome than econometric modelling suggested. The introduction of GDPR has emphasised the security and reliability of physical mail.

In December 2017 An Post achieved a breakthrough agreement on Terminal Dues (the amount European postal companies pay An Post for delivering their mail in Ireland) which is worth €6m in 2018, rising to €10m in 2020.

Also at the year-end the Mails & Parcels business restructured its network to reduce headcount by 316 FTEs (completed in Q1 2018), bringing the total reduction by Q1 2018 of 333 FTEs. Further efficiencies will be achieved in reduced overhead and with increasing automation of the parcels’ operation.

The Retail business was established at the year-end, encompassing Post Offices, Post Insurance, BillPay, and State Savings operations. The Retail team is engaged in a major plan for the renewal and reinvention of the Network, expanding the range of financial products, Government services and e-commerce (parcels).

Commenting on 2017 results, An Post CEO David McRedmond said:

An Post has achieved a substantial turnaround of its business to move back into growth and profit. With the restructuring into two core businesses, the reinvigoration of management, the collaboration with the staff and Unions, especially the CWU, and the backing of Government, the future is bright.  An Post is the enabler of e-commerce, and will play an increasingly important role partnering the digital economy.

Annual Report 2017 Financials
Annual Report 2017 Commentary
An Post Financial Results 2017

 

Fás agus Brabús ag An Post arís in 2017

•  Ioncam de €840m, méadú 1.2% ar 2016
•  Brabús de €8.4m i gcomparáid le caillteanas de €12.4m agus réamhaisnéis caillteanais   de €61m
•  Brabús de €49.6m roimh chánachas (€15.7m de chaillteanas in 2016) lena n-áirítear   díol maoine
•  Méideanna seachadadh beartán ardaithe 30% ón bhliain roimhe
•  Laghdú de 333 CLA ar líon na foirne tar éis athstruchtúrú (R1 2018)
•  Praghsáil dírithe ar chostas athbhunaithe le stampa €1, agus Comhaontú Idirnáisiúnta   ceannródaíoch 'Dleachtanna Ceann Scríbe'

19 Aibreán, 2018: Tá a chuid torthaí don bhliain 2017 eisithe ag An Post tar éis don Chomh-aireacht iad a fhaomhadh an tseachtain seo.

Tháinig athrú treo suntasach ar thorthaí na Cuideachta agus filleadh ar bhrabúsacht agus fás in 2017. Le hardú ar phraghas stampa go €1, agus méadú ollmhór i méideanna beartán a chúitigh an meath i méid an phoist traidisiúnta mar gheall ar ríomh-ionadú tugadh an t-ioncam ar ais go leibhéil 2008.

Mar gheall ar chaillteanas de €12.4m in 2016, bhí caillteanais de €61m á thuar ag New Era agus PWC do An Post mura ndéanfaí gníomh radacach. Leis na harduithe i bpraghsanna i lár na bliana (meánardú de 20%) agus laghdú ar chostais chomh maith le méadú ar ioncam ó bheartais baineadh amach brabús de €8.4m in 2017. Ag cur gnóthachain ó dhíol Lána Chairdif agus díbhinn athmhaoinithe de €9m ó Premier Lotteries Ireland DAC, bhí brabús réamhchánachais de €49.6m ag An Post in 2017.

Mar thoradh ar athbhreithniú mór straitéiseach a rinne An Post i gcomhar le McKinsey & Co rinneadh dhá chuid den chuideachta, an tSeirbhís Poist agus Beartán agus Líonra Oifig an Phoist. Mar chuid den athstruchtúrú, tá an fhoireann bainistíochta laghdaithe ó 11 go 6 fheidhmeannach.

I measc buaicphointí na bliana tá an tseirbhís athsheolta agus athdheartha beartán, a cuireadh i gcrích i gcomhar le Cumann na nOibrithe Cumarsáide (CWU), príomh-cheardchumann An Post. Le síneadh na seirbhíse seachadta go dtí an Satharn agus scoitheadh déanach oíche d'éirigh leis An Post sciar suntasach den mhargadh beartán atá méadú go mór a ghnóthú agus fás 30% a bhaint amach i rith na bliana.  Tá sciar An Post ag fás go mear le brandaí tábhachtacha sa RA agus go hidirnáisiúnta mar chomhpháirtí iontaofa don seoltóir agus don cheannaitheoir.

Leis an ardú eisceachtúil ar phraghas stampaí i mí Aibreán 2017 tá an meánphraghas Eorpach le haghaidh stampaí bainte amach ag An Post. Áirítear meath sa ráta reatha i méid poist ó -7% (roimh an ardú) go -9.5% san ardú ceannlíne de 38% (meánardú 20% thar na táirgí uile), toradh níos dearfaí ná mar a bhí á thuar ag sa samhaltú eacnaiméadrach. Cuireadh béim bhreise ar shlándáil agus ar iontaofacht an phoist fhisicigh le tabhairt isteach GDPR.

I Mí na Nollag 2017, d'éirigh leis An Post comhaontú ceannródaíoch ar Dhleachtanna Ceann Scríbe (an méid a íocann cuideachta poist Eorpacha leis An Post lena bpost a sheachadadh in Éirinn), de luach €6m in 2018, ag ardú go €10m in 2020.

Rinneadh athscruchtúrú líonra ar an ngnó Poist agus Beartán ag deireadh na bliana chomh maith, le laghdú de 316 CLA ar an líon fostaithe, rud a thug an laghdú iomlán go 333CLA faoi R1 2018. Bainfear éifeachtúlachtaí breise amach le laghdú ar fhorchostais agus le méadú ar uasoibriú na n-oibríochtaí beartán.

Cuireadh an gnó Miondíola ar bun ag deireadh na bliana, é comhdhéanta de Oifigí Poist, Post Insurance, BillPay, agus gníomhaíochtaí Coigilteas Stáit. Tá mórphlean ag an bhfoireann Miondíola le hathnuachan agus athchruthú a dhéanamh ar an Líonra, agus réimse na dtáirgí airgeadais, na seirbhísí Rialtais, agus na r-thráchtála a leathnú.

Agus é ag trácht ar na torthaí, dúirt Príomhfheidhmeannach An Post David McRedmond:

"Tá athbheochan mór déanta ag An Post ar a ghnó, agus fás agus brabús bainte amach arís againn. Leis an athstruchtúrú mar dhá chroí-ghnó, athspreagadh na bainistíochta, comhoibriú na gCeardchumann, agus tacaíocht an Rialtais, tá todhchaí geal i ndán dúinn.  Is áisitheoir r-chumarsáide é An Post, agus beidh páirt mhéadaithe agus thábhachtach againn mar chomhpháirtí don gheilleagar digiteach”.