NZ Post has lowered its profit forecast for the year to June 30 citing difficult trading conditions and some significant one off items.Group chief executive Brian Roche said the operating net profit before tax (NPAT) is expected to be approximately $72 mi
NZ Post has lowered its profit forecast for the year to June 30 citing difficult trading conditions and some significant one off items.
Group chief executive Brian Roche said the operating net profit before tax (NPAT) is expected to be approximately $72 million, $5 million down on the normalised operating NPAT of $77.2 million last year, and lower than the $80.8 million NPAT projected for the 2010 year in the 2009 Statement of Corporate Intent.
After one-off adjustments the reported NPAT for the 2009 financial year was $71.8 million. The reported NPAT for the 2010 financial year is expected to be about break even after taking into account four one-off costs arising at the group level and in the postal services business in the second half of the financial year, Mr Roche said.
The final number will be known when the full-year audited accounts are completed. New Zealand Post expects to confirm its annual result on 20 August.
In keeping with Ministerial expectations for transparency by state owned enterprises, the Board had decided to provide an early public indication of its revised profit outlook, Mr Roche said.
From the 2011 financial year, NPAT is expected to return to the levels projected in the 2010 Statement of Corporate Intent. This envisages an NPAT of $60.8 million in 2011, rising to $84.3 million in 2012 and $117.5 million in 2013.
Mr Roche said that, as signalled in the half-year report, the operating profit for the 2010 financial year has been affected by reduced contributions from across the Group, due primarily to declining mail volumes and generally tight margins in a competitive business environment, especially in the banking sector.
“The impact on New Zealand Post’s letters business of economic conditions and digital substitution is well understood,” he said. “We will continue to work with our shareholders on a range of options to ensure a sustainable future for our mail processing and delivery networks.
