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In a gloomy half-year update to shareholders, Graham confirmed that ”the headwinds facing our business have never been stronger”.
“Our letters business continues to decline, as volumes fall and costs increase,” he said.
“Changing customer behaviours are also impacting our retail network, with continuing digitisation resulting in declining retail transactions at Post Offices.”
AusPost Group revenue dropped $4.69 billion in the first half of the financial year to December 31, 2022 – down 2.4 per cent on the first half of the previous financial year.
Group profits before tax plummeted 88.2 per cent, from $199.8 million to $23.6 million.
Losses in the letter section of the business were dubbed a major factor in the group’s recent profits, rising from $69.9 million in the first half of last financial year, to $189.7 million in the first half of this one.
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The business people were spending less on parcels and online shopping post-pandemic and amid the cost of living crisis.
Operational costs to December 31 last year increased 1.2 per cent from the same period the year before to $4.64 billion, due in part to severe weather events, rail network disruptions and a 6.1 per cent wage increase.
In an effort to stem ongoing losses with a new operator model for its corporate support office to “simplify and streamline” the business.
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“Our Post26 strategy will help position Australia Post to be financially, socially and environmentally sustainable and enable the business to make a positive contribution to Australian communities, now and in the future,” Graham said.
“We are focusing on streamlining our product portfolio making us easier to do business with and continuing to be a leader in sustainability. However, further changes to the way we operate are necessary.”
