Back
~
1
min read
· Posted on
February 21, 2024

Australia Post suffers major financial loss.. so it's not just major parcel losses anymore

Australia Post just reported a pre-tax loss of $200 million for 2023.

What's the key learning?

  • A big part of the challenge is that AusPost is actually required (by law) to deliver mail five days a week, to even the most remote parts of Australia.
  • Australia Post is now considering some radical changes to keep the business afloat, because they aren't effectively utilising their assets currently.
  • Asset utilisation is a measure of how effectively a company uses its assets to generate revenue or value.

👉 Background: Australia Post has been around since 1809. And since then, it's fair to say the world has changed a lot.

  • Less bills in mail and more bills online
  • Less pen pals in mail and more social media connections
  • Less horses and carriage to deliver messages and more fibre-optic cables

👉 What happened: As a result, Australia Post just reported a pre-tax loss of $200 million for 2023. A big part of the challenge is that AusPost is actually required (by law) to deliver mail five days a week, to even the most remote parts of Australia. That's expensive.

👉 What else: Australia Post is now considering some radical changes to keep the business afloat:

  • They're looking into raising the price of stamps
  • They're discussing cutting down how many days mail is delivered each week
  • They're considering closing up to a third of over 4,000 postal outlets across the country...

Because currently, they aren't effectively utilising  their assets.

What's the key learning?

💡Asset utilisation is a measure of how effectively a company uses its assets to generate revenue or value. It's often calculated by dividing revenue by total assets.

💡Australia Post needs to looking at a range of new ways to effectively utilise their huge amount of assets (ie posties, 4,000+ post office outlets and distribution centres).

💡And with 70 post office outlets in Brunswick alone, it seems like shutting down outlets may be their first choice.

‍

Ready to win at money?

Sign up for Flux and join 100,000 members of the Flux family

A button to App StoreGoogle Play store button
Excellent  4.9 out of 5
Star rating
No items found.