This week, Australia Post reported a $200 million pre-tax loss for the 2023 financial year, its second loss since becoming a self-funded government business in 1989. However, there was a bright spot in the results – the company’s parcel business continues to grow steadily despite increasing competition.
While Australia Post recorded an overall revenue of $8.97 billion, largely flat from the previous year, its Parcels and Services division saw revenue increase 0.9% to $7.3 billion. This growth comes even as major global players expand their operations down under.
The company has invested significantly in its parcel delivery capabilities, spending $1.2 billion over the past three years to expand its network. This includes new facilities in Perth, Sydney, Dubbo and Ballarat, as well as adding 500 new electric delivery vehicles to its fleet.
According to Australia Post CEO Paul Graham, the company is focusing on providing a quality parcel delivery experience through digital enhancements like improved tracking and more convenient pickup options. The addition of parcel lockers in almost 100 new locations this past year aims to give consumers more flexibility.
Australia Post Parcel Business Under Pressure To Perform
The losses experienced in Australia Post’s traditional letter delivery business put pressure on the growing parcels division. However, Graham expressed confidence that with continued investment in parcel capabilities and necessary regulatory changes, the company can return to profitability.
As more Australians shop online, demand for reliable and timely parcel delivery will only increase. Australia Post’s continued growth in parcel revenue and expansion of its logistics network position it well to benefit from the ongoing ecommerce boom.
“Australia Post plays a critical role in the lives of all Australians. A stronger, more viable Australia Post will be able to continue to meet the evolving needs of Australian communities. We want our consumers and businesses to continue to benefit from a large, national network of postal services, particularly in rural and regional areas,” Graham concluded.
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