NZ Post reports $9 million improvement on operating profit for the 2025 Half Year
NZ Post Chief Executive David Walsh says this $9 million improvement reflects gains from both growing revenue and an ongoing focus on costs.
“Our operating profit has increased as a result of customer acquisition and retention, as well as an ongoing focus on operational efficiency and managing our support costs,” says Walsh.
The operating profit increase did not translate into growth in net profit after tax, which is $3million for the 2025 half year compared to $7million recorded in the same period last financial year. The key drivers of this $4 million reduction were higher financing costs and lease interest costs on property.
“In addition to higher financing costs, the ongoing weak economic conditions have impacted consumer spending and therefore parcel volumes. This reporting period has seen softer parcel volumes as a result, with the exception of our ‘peak’ period in the lead up to Christmas.”
In December 2024, NZ Post saw our highest ever volumes per week; averaging 2.5 million items per week in the three weeks before Christmas. This is significantly up from the 1.6 million items per week that NZ Post had been averaging in the lead up to the holidays.
“NZ Post has made significant progress building our processing and automation capacity in this reporting period. The Auckland Processing Centre has now gone live with international outbound operations, which is a significant milestone in our parcel processing capabilities,” says Walsh.
Processing of international inbound parcels with the Ministry for Primary Industries (MPI) and the New Zealand Customs Service (Customs)at the Auckland Processing Centre is expected to follow in the first quarter of 2025.
Also of note this reporting period was the ongoing integration of former PBT customers into the NZ Post network and the acquisition of the remaining 50% of Supply Chain Solutions.
“Looking forward, managing costs will remain a key focus for us as we continue to navigate a tough economic environment. We will continue to review and refine our network, operational and support costs, while keeping our people safe, and delivering the best for our customers.”