MaltaPost plc registered €4.7 million in pre-tax profit for the financial year ended 30th September 2024, more than double the €2.3 million recorded the previous year.

In its annual financial statement, posted to the Malta Stock Exchange, MaltaPost noted that although its total revenue rose by a modest 1.3 per cent to €40.14 million, total expenses dropped by 3.2 per cent to €35.89 million, driven by changes in its business segments – notably leading to a drop in foreign direct mail costs – and improved cost control and efficiencies.

The drop in its total expenses came despite a substantial 13.7 per cent increase in its total labour cost to €17.12 million, which the company attributed primarily to the record COLA increase of €12.81 per week that became effective from 1st January 2024.

Chairman Joseph Said highlighted the Malta Communications Authority’s approval of an Automated Tariff Revision Mechanism during the period under review. The mechanism shall now cover tariff revisions for all services falling under the Universal Service Obligation (USO), “allowing better financial planning for the company,” he said.

The pricing of the USO has long been a bone of contention for MaltaPost, which had been vociferous in pointing out that it was actually generating a loss for the company.

During the financial year just concluded, however, the regulator also approved the revision of some USO tariffs, which positively impacted MaltaPost’s financials, allowing for modest profits to be registered in this segment.

Mr Said pointed out that “despite the tariff adjustments ... domestic postal service tariffs in Malta remain the lowest in Europe, as we continue to bear the financial burden of subsidising the single-piece local postal service.”

The company’s last-mile delivery business, particularly servicing the growing use of ecommerce by Maltese residents, has “delivered respectable volume and and revenue growth in key segments,” said CEO Joseph Gafà.

The Board of Directors proposed a final net dividend of €0.024 per nominal share, amounting to €1.928 million, an increase over the €1.55 million final dividend paid out at the end of the previous financial year.