Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ Post improves half year result but big challenges remain


25 February 2013

New Zealand Post Group improves half year result but big challenges remain

The New Zealand Post Group has posted an overall improved result for the half year ended 31 December 2012 but with mixed results across its financial services, and its logistics and mail businesses.

The Group recorded a net profit after tax of $59.6 million, compared with $35.4 million in the corresponding period in 2011.

The Directors have declared an interim dividend of $2.5 million for the period, the same as for the first half of the previous financial year.

New Zealand Post Group Chief Executive Brian Roche said the result was boosted by the performance of Kiwibank and the Group’s financial services businesses.

Mr Roche said Kiwibank’s first half performance builds on its market position. The bank performed well in a highly competitive market, particularly in the face of aggressive competition in the home loan environment.

There were mixed results across the logistics and mail businesses. The result reflects the benefits of the full consolidation of the courier business – Express Couriers Limited (ECL) – following the acquisition of the remaining 50 percent of the business in June 2012. However that was balanced against a continued decline in letter volumes and revenue.

Mr Roche said ECL’s performance was very encouraging in the extremely competitive courier market.

“ECL has performed well to increase profitability compared with the previous year. The result supports our decision to purchase the remaining shares in this company so as to have 100 percent ownership of a business providing express delivery services.

However challenges remain for the mail business with total mail volumes falling by 35 million compared with the corresponding period the previous year – a drop of 8.1 percent. Tight cost management helped offset the declines in revenue.

“Thirty five million fewer pieces of mail in the network is a stark reminder of the need for change. New Zealand Post Group is confident it can maintain a viable and sustainable physical network if it is given the flexibility to make necessary changes in the future.

“Making those changes can still be achieved in a measured and planned manner working in the best interests of the community and business. But the latest mail volume statistics are further evidence that the ability to make the right decisions needs to be given now rather than put off,” Mr Roche said.

The New Zealand Post Group full year financial outlook is to meet expectations. Despite an increasingly competitive residential banking sector, Kiwibank has maintained strong levels of profitability, although further pressure is expected towards year end. The mail business continues to manage the decline in letter volumes with operational changes to ensure the business remains viable while longer term initiatives are implemented. ECL continues to trade strongly.

Other key decisions made in the first half of this financial year include the divestment of the shareholding in Datacom, which will result in a one-off gain on sale, and the sale of two office buildings in Auckland and Wellington, all of which will free up capital for both the bank and continuing change in the logistics and mail businesses.

“The Group remains committed to and confident of achieving the strategic goals of growing the bank and delivering a sustainable network for the future”, said Mr Roche. $ millions 6 months ended 31 December 2012
(unaudited) 6 months ended 31 December 2011 (unaudited) 12 months ended 30 June 2012 (audited)
Revenue from operations 872.3 670.2 1,309.4
Operating expenditure 793.1 628.5 1,223.5
Profit before income tax 78.4 43.9 190.1
Net profit after tax 59.6 35.4 169.7
Share capital 192.2 192.2 192.2
Shareholders’ equity 1,019.2 833.0 959.5


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news