Parcel Business Drives Australia Post Profit

A general view of Australia Post mailboxes in Coogee on October 28, 2020 in Sydney, Australia. An investigation has been launched by Prime Minister Scott Morrison into Australia Post after revelations by chief executive Christine Holgate during Senate estimates last week that the government-owned business had bought four Cartier watches worth almost $20,000. Ryan Pierse/Getty Images

Australia Post has reported a before-tax full-year profit of $100.7 million amid strong growth in its parcel business during COVID-19.

Overall group revenue for the 2020/21 financial year was up 10.3 per cent to $8.27 billion, while the ‘parcels and services’ division realised 17.7 per cent growth.

“This strong result rests with the hard work of our people, who have continued to deliver every day through the challenges of a pandemic and numerous lockdowns,” acting CEO and Managing Director Rodney Boys said in a statement accompanying the results on Tuesday.

An express post envelope displayed inside Darlinghurst post office on May 7, 2014 in Sydney, Australia. Don Arnold/Getty Images

The results represent an increase in pre-tax profit of $47.1 million on the previous year, with the organisation noting “disruptions to network operations” while “processing unprecedented parcel volumes and significantly reduced transport capacity”.

“The strength of eCommerce - up 31.8 per cent as Australians took to online shopping in record numbers - has supported the result,” Mr Boys added.

A government business enterprise with some 35,000 employees, Australia Post returned $46.2 million in dividends to the government on 2020/21. It also warned of potential negative impacts on the current financial year due to “considerable uncertainty” stemming from COVID-19.

Boys became acting CEO after the departure of Christine Holgate in October last year, following revelations that four senior staff were gifted luxury watches worth a combined $20,000.

A woman posts mail via an Express Post box located on Oxford st outside the Darlinghurst Post Office on May 7, 2014 in Sydney, Australia. Don Arnold/Getty Images

In early August Australia Post reached a $1 million settlement with Ms Holgate, acknowledging it “regrets the difficult circumstances” of her departure.

Australia Post expects to table its 2021 Annual Report in federal parliament in October.