Post Group Records Continuing Growth

13 September 2007

Post Group Records Continuing Growth

The New Zealand Post Group has announced a net after-tax profit of $70.2 million for the year ended 30 June 2007, compared to $68.7 million in 2005/06 year.

Chief Executive John Allen says the result represented a sound performance and was the sixth consecutive year in which an improvement in financial performance has been announced.

“We have had a successful year in an increasingly challenging environment thanks largely to a diversification strategy begun some 20 year ago when New Zealand Post became a State-Owned Enterprise. Today, banking, data management, software development, and express and logistics businesses now complement our postal business.

“As we celebrate our 20th birthday as an SOE, I am pleased to say that our New Zealand Post and Kiwibank brands are amongst the most trusted in New Zealand. Our Posties, Couriers, PostShop people, Mobile Mortgage Managers and Rural Delivery teams bring our brands to life every day for New Zealanders so that they are more than just advertising logos.

“The New Zealand Post Group also experienced 10% increases in earnings before interest and taxes (EBIT) and 10% growth in revenue.

“Kiwibank’s profit increased 61% following another strong year in which the Bank acquired the mortgage book of AMP branded mortgages previously held by HSBC along with the Superbank deposit book and 51% share of New Zealand Home Loans. These acquisitions significantly enhanced the ability of Kiwibank to both meet the needs of diverse customer segments and support its continuing growth and development.

“The Postal business continues to face challenges as traditional mail declines although the effects of this trend are being offset by growth in packets and parcels usage, due to increasing online shopping and the variety of items that now make up mail.

“Our joint venture with DHL grew significantly expanding its range of logistics services and growing market share in the highly competitive express courier market.

“We are here for the long-term – not to maximise profit in any given year. We believe that by understanding our customers and the community we all live in, and investing in the right areas, this group of companies can expect to continue to grow sustainably.”

The 2006/07 result enables the New Zealand Post Group to return a total dividend to the Government – as sole shareholder - of $30.8 million &$27.7 million in 2005/06)

New Zealand Post Board Chairman Jim Bolger says, “Today, the New Zealand Post Group is a strong organisation, proud of its long history and reach in this country and equally proud of its achievements, particularly during the past 20 years as it has matured as an SOE and entered into a variety of commercial undertakings.

“The New Zealand Post Group is positioned to continue its success while meeting its social and commercial obligations and add real value for New Zealanders well into the future.”

ENDS

2006/2007 highlights:

• A steady focus on improving safety at work for is reaping rewards. Lost Time Injuries were down 36% across the Group and equates to about 180 fewer lost time injuries this year.

• Despite major change programmes in many parts of the business, our People Engagement Score (measured using the Gallup model) has increased to 3.84 on a 5.0 scale.

• Express Couriers Limited’s whole package offer has expanded to include RoadStar.

• Datamail Group invested in eight new inserting machines for its three main centres which will provide greater flexibility, quicker turnaround and increased integrity for customers.

• The independent measure of On Time Delivery of Letters demonstrates that during the 2006/07 year we delivered 95.5% of the mail entrusted to us by customers on time or earlier.

• Prezzy Cards have proved popular. Over 30,000 were sold in December.

• PostShop Kiwibanks processed over 40 million transactions this year.

• Kiwibank again won the Best Value for Money Bank at the Sunday Star-Times Cannex Banking Awards.

• 100,000 more New Zealanders joined Kiwibank, swelling overall customer numbers to around 550,000.

• The Electoral Enrolment Centre sent out 2.9 million enrolment update packs to people’s homes with the aim of getting as many people as possible correctly enrolled to vote for this year’s local elections.

• The company was recognised with two highly commended Govt3 Awards for Office Consumables and Equipment and Sustainable Building design categories.

• In June, the first of three mail centres built using sustainable principles opened its doors in Hamilton.

• One million postage-included envelopes were donated to more than 4200 community groups as part of the Community Post programme.
• We sent a 114 square metre postcard made up of 372 pieces and signed by thousands of New Zealanders to the Emirates Team New Zealand base in Valencia, Spain.

Financial Performance
2006/07 2005/06
Net after-tax profit $70.2 m $68.7m
Total dividend $30.8m $27.7
Operating revenue $1,222.2m $1,114.3m
Operating expenditure $1,121.2m $1,019.2m
Economic Value Added (EVATM) $28.1m $25.4m
Total assets $5, 497.9m $3, 733.8m
Total equity $595.8m $534.1m

Deed of Understanding results

The Deed of Understanding is an agreement between New Zealand Post and the Government which defines New Zealand Post’s social obligations.

Our Commitment Actual
To maintain a network of at least 880 PostShops and Post Centres 324 PostShops
662 Post Centres
986 Total
To continue to provide at least a six-day-a-week postal service to more than 95% of addresses 96.62%
To continue to provide at least a five or six-day-a-week postal service to more than 99.88% of addresses 99.89%
Not to reintroduce a rural delivery fee No fee

ends

© Scoop Media