An Post, the government-owned postal service of Ireland, reported a 4% rise in revenues last year, reaching €922.9 million, despite a decline in traditional letter volumes. This was primarily driven by the increasing trend of e-commerce parcel deliveries which saw a growth of 14%.
The postal powerhouse aims to boost its sales to reach the coveted €1 billion mark by 2028, according to its recently released annual report. This target is set two years later than the previously announced ambition to reach this benchmark by 2026.
David McRedmond, the group chief executive, hinted that the 2026 objective still stands, albeit contingent on the fluctuating trends between traditional letter correspondence and e-commerce practices.
Furthermore, e-commerce is seeing a buoyant market currently with growth rates soaring approximately to 16%, after a 14% increase last year. In contrast, traditional mail volumes have been falling year on year, with a 6% decrease reported last year and currently down by 9% this year.
An Post’s net loss for the year was substantially lower, at €20.8 million compared to the previous €224.1 million deficit in 2022. This reduction was due to the elimination of a singular accounting charge concerning the company’s pension scheme.
The net loss of 2023 comprised of a capital loss of €16.7 million resulting from the sale of the An Post’s minority stake in the National Lottery. The sale was to a French group operator La Française des Jeux (FDJ) for €17.4 million.
Originally, the investment in the National Lottery stood at €25 million, and throughout its lifespan, it generated €46 million in cash dividends for the postal company. However, the financial loss of €16.7 million in the financial report indicates a deficit against the carrying value at the time of sale.