An Post’s profits more than doubled to €8.6m last year despite a decrease in the amount of post being sent as the company’s aggressive cost savings bore fruit.
An Post Group revenue increased by €11m to €826m during 2015 which helped profits surge from €3.3m the previous year.
The company’s cost reduction measures — which have seen close to 1,900 full-time equivalents let go in the past number of years with another 700 or so due by 2019 — yielded €100m in savings.
An Post introduced another round of job cuts after posting an annual loss of €17.5m in 2013 which added to the 1,300 or so staff that had left since 2009.
The company made a loss of €32.3m in delivering on its Universal Service Obligation (USO) — which requires it to collect and deliver post nationwide — last year, however. It described the obligation as “an ongoing matter of concern” despite having fallen from €67.3m in 2012.
“Our strategy of implementing appropriate pricing and cost efficiency measures in the core business while maintaining high standards of service quality, product innovation and diversification has to-date enabled the Company adequately cope with unprecedented threats and challenges.
“However, the medium and longer-term issues of safeguarding the USO and sustaining a realistic, high quality Post Office network now require urgent discussion with all stakeholders, so the core Company can achieve the necessary level of profitability to ensure its fiscal stability,” An Post chief executive Donal Connell said.
Mr Connell also announced he is to leave the group when his contract expires in the second half of this year after 10 years’ service.
An Post recorded inflows of €400m to the State Savings fund last year despite record low interest rates while the contribution of the group’s subsidiaries increased by 23% on 2014 levels with profits of €16m.
UK-based Air Business now accounts for 10% of group revenue and continues to grow.
Mail volumes are down 35% from their peak in 2007.
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