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


NZ Posts lifts 1H profit 18% by slashing costs

NZ Posts lifts first-half profit by 18 percent by slashing costs faster than sales fall

Feb. 24 (BusinessDesk) – New Zealand Post Group, which plans to eliminate up 2,000 jobs in the next three years and reduce deliveries to just three days a week as volumes plunge, said first-half profit rose 18 percent as it slashed costs faster than revenue declined.

Profit was $71 million in the six months ended Dec 31, from $60 million a year earlier, the state-owned postal service said in statement. Sales fell to $860 million from $872 million, while operating costs dropped 4 percent to $761 million, or declines of $12 million and $32 million respectively.

NZ Post expects its full-year result to be “close to plan,” chief executive Brian Roche said. “We will balance ongoing cost reduction with a strong focus on growing new and profitable revenue and developing new ways to serve customers and meet their changing needs.”

The company is grappling with the continued slide in the volume of letters posted as consumers switch to the internet, email and social media for everything from paying bills to sending birthday greetings and keeping in touch with loved ones. It estimates letter volumes have tumbled 30 percent since 2006.

In the same period, parcel volumes have increased and today Roche said growing its parcels and logistics business “is a top priority.”

NZ Post is preparing to reduce delivery of standard mail to urban households to alternate days in mid-2015 and is trialling different modes of delivery over the next six months, it said. In November, the company said it aims to eliminate between 1,500 and 2,000 jobs in a three-year shake-up, by reducing deliveries, closing Post Shops and trimming costs.

“New Zealand Post will continue to reduce its property footprint, including owning fewer corporate Post Shops in its network of 880 service points, with more services being hosted by local businesses,” Roche said.

The company will pay an interim dividend of $2.5 million, unchanged from a year earlier.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Scouring: Cavalier Merger Would Extract 'Monopoly Rents' - Godfrey Hirst

A merger of Cavalier Wool Holdings and New Zealand Wool Services International's two wool scouring operations would create a monopoly, says carpet maker Godfrey Hirst. The Commerce Commission on Friday released its second draft determination on the merger, maintaining its view that the public benefits would outweigh the loss of competition. More>>


Scoop Review Of Books: She Means Business

As Foreman says in her conclusion, this is a business book. It opens with a brief biographical section followed by a collection of interesting tips for entrepreneurs... More>>


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Housing: English On Housing Affordability And The Economy

"Long lead times in the planning process tend to drive prices higher in the upswing of the housing cycle. And those lead times increase the risk that eight years later, when additional supply arrives, the demand shock that spurred the additional supply has reversed. The resulting excess supply could produce a price crash..." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news