An Post releases 2020 results

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An Post has released its results for 2020, with revenues growing by 2.6% to €916m. Strong parcel growth of 100% was partially offset by a decline in letter volumes of 7% and trading declines in the Post Office network due to Covid restrictions. The company estimated that the Coronavirus pandemic adversely impacted results by over €50m due to PPE costs, replacement staff costs, reduced Post Office transactions and a postponed price increase.

Profit before depreciation and amortisation of €33m represented a 59% drop on that of 2019, despite an increase in e-commerce parcels, strong Christmas mail and growth in new financial services. After depreciation and amortisation, the business had a loss of €10m. The total loss for the year was €18m, a sharp drop from profits of €66m in 2019. Despite this, the company’s balance sheet remains strong with €81m unrestricted cash at the year-end.

An Post state it has seen a very strong start to 2021 with revenues for Q1 up 11% year-on-year, reflecting continued high parcel volumes and a recovery in letter volumes. The company stated it expects profits to return to pre-pandemic levels with the normalisation of business and the reinstatement of the delayed price increase.

An Post has also announced its Green Light Programme, its strategy for the next five years from 2021 to 2026. Building on a fourth consecutive year of revenue growth, plans include: rebuilding the logistics network to meet increasing e-commerce demand; transformation of the Post Office network as an essential service for banking, out-of-home e-commerce and government services; an expansion of An Post Money’s services; development of a digital platform for e-commerce; growth of An Post Commerce; and “CC2.0”, a new corporate centre to help businesses post-covid.

The Green Light Programme will see an investment of up to €300m over the next five years into physical and digital infrastructure. The company is targeting revenues of over €1bn within the next five years with a long term net margin target of 7-10%.

Source: An Post

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