New Zealand Post profit drops 19%
State-owned New Zealand Post Group has recorded a reduced net profit after tax of $42.5 million in what it describes as a “difficult” six months to December 31 last year.This was down 19.4% on the $52.8 million net earnings in the same period
Fri, 26 Feb 2010
State-owned New Zealand Post Group has recorded a reduced net profit after tax of $42.5 million in what it describes as a “difficult” six months to December 31 last year.
This was down 19.4% on the $52.8 million net earnings in the same period in 2008.
However, group chief executive Brian Roche said that New Zealand Post’s half-year result was “acceptable” given the significant impacts of the global economic downturn and increasing competition.
“The recessionary conditions in the last financial year continued into the first half of the current year and led to further volume reductions in our postal, courier and distribution businesses,” he said.
Domestic mail and parcel volumes handled by the Postal Services business during the half year were 5.7% – or 27 million items – down on the same period in 2008.
New Zealand Post has also been hit by a reduction in net profit from $25.8 million to $24.0 million for Kiwi Group Holdings, which includes Kiwibank.
The group profit before tax was $55.1 million, down 21.2% on the $69.9 million in the 2008 half year period.
A 5.3% decline to $621.5 million in revenue from operations was also due largely to the economic downturn and financial sector changes, New Zealand Post said.
However, some successful cost cutting reduced expenditure by $9.1 million to $589.0 million.
The board has declared a reduced dividend of $5.7 million for the period, down from $6.9 million in 2008.
Fri, 26 Feb 2010
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