An Post reports record operating profit for 2008

An Post has reported a record operating profit of €31.2m for 2008, amounting to 3.7% of turnover.

At €850m, turnover was down €26m (2.9%), reflecting a 2% drop in mail volumes over the previous year, the company said in a statement.

Profit after tax was €33.2m in 2008, the fifth consecutive profitable year for the Group.

An Post’s performance in 2008 was influenced by first half growth in mail volumes, a strong retail performance, efficiencies achieved by the company’s Transformation programme and strict cost control, the company statement said.

“A most acceptable operating profit was achieved on the back of tight cost control in every aspect of the business," chairman John Fitzgerald said following the company's AGM at the GPO.

"This prudent approach must continue as we are now in a radically different economic environment, and there is only one certainty for An Post – that is the imperative to continue to transform the business into an entity that can remain viable in a competitive market.

"That task must remain our central focus as we move towards 2011 when the postal market will be open to full competition," Fitzgerald said.

The unprecedented economic downturn, and its potential to affect our ongoing profitability, brings new and very serious challenges for everyone and a renewed cost focus," said chief executive Donal Connell.

“It is important that we continue to focus on those things over which we have control, to remain competitive and not to lose sight of the reality of full market opening in some 20 months' time."