MaltaPost plc has posted its results for the Group’s financial year ending 30th September 2020, with a pre-tax profit of €2.8 million registered, down by seven per cent from the 2019 financial year.

In the Group chairman’s message to shareholders, Joseph Said remarked that MaltaPost faced significant and unprecedented challenges this year due to the outbreak of the COVID-19 pandemic and the closure of Malta’s sole international airport for no less than three months.

The MaltaPost Group comprises MaltaPost p.l.c., its subsidiary company, Tanseana Limited (Tanseana), and its associate company IVALIFE Limited.

The Group was registered in 1998 and is Malta's leading postal services company, being the sole licensed Universal Service Provider of postal service on the Maltese Islands in terms of the Postal Services Act (Chapter 254 of the Laws of Malta) and under the terms of the Universal Postal Union Convention and Constitution on behalf of the Government of Malta.

It is regulated by the Malta Communications Authority. The Company operates a network of 40 Post Offices and 26 Sub-Post Offices around Malta and Gozo providing an extensive range of postal and financial services.

For FY 2020, Earnings per Share continued to remain constant resulting in a final net dividend of €0.04 per nominal €0.25 share, payable in cash and which is being proposed for approval by the shareholders at the Annual General Meeting.

Shareholders’ Funds stand at €27.2 million, ensuring that the company “remains well-positioned to progress its investment programme which includes the strengthening of its branch network, the gradual introduction of new last-mile delivery tools as well as diversification into new business lines such as insurance,” Mr Said noted.

In fact, during this financial year, MaltaPost entered into an agreement to acquire a 49 per cent shareholding in Untours Insurance Agents Limited, a company which carries out the business of general insurance.

Another investment by way of a 25 per cent stake in IVALIFE Limited, a new life insurance company, should add long-term value both to MaltaPost shareholders as well as the community at large, Mr Said noted. 

MaltaPost’s revenues remained stable at €34.09 million (2019: €34.38 million). Postal revenue represented 87 per cent of total revenue, while the balance stemmed from non-postal services such as document management, bill collection and financial services.

Total expenses remained stable at €31.72 million (2019: €31.70 million). Employee expenses decreased by 6 per cent to €14.94 million (2019: €16.08 million) as a result of cost management initiatives as a consequence of a reduction in volumes handled during the COVID-19 pandemic as further amplified at the latter part of this report.

A 25 per cent share of the loss registered by the associated company IVALIFE Limited of €151k was charged against the Group’s annual profits.

Mr Said noted that the Company continues to play a central role in the Maltese economy and in the daily life of the community.

“The shift to an increasingly ecommerce-oriented environment underlines the need for us to continuously adapt our local and international product and service offerings six days a week. All this needs to be done within a regulated tariff framework which is not highly responsive to market changes and realities.

“To date, and despite being an island nation and therefore dependent on international flight connections, our tariffs remain the lowest in Europe.”

Further investment in MaltaPost’s IT infrastructure as well as in its delivery network continued to enable the company “to efficiently handle the demands stemming from the consistent and accelerated changes experienced in the last mile delivery.”

Concurrently, Mr Said remarked that the company continues to increase its branch network so as to meet customer expectations and facilitate the introduction of new services.

Following the implementation of certain postal tariff revisions, MaltaPost still awaits the approval of the Malta Communications Authority to implement the 3rd step of the pricing revision originally proposed in 2018.

“This revision is necessary to address the loss-making services we provide under the Universal Service Obligation as a result of the year-on-year shrinkage in Letter Mail volumes as well as the impact of ever-increasing labour costs.”

Much of the focus of MaltaPost’s management team during the second half of this financial year, Mr Said remarked, centred on managing the impact and hazards of the pandemic.

“With satisfaction, I report that the company took all necessary mitigating actions at very short notice so as to ensure business continuity while also giving utmost priority to the health and safety of our staff members and customers.

“Across the Group, staff members, led by a strong and competent management team have worked incredibly hard, not in the easiest of conditions, to maintain a smooth collection and delivery process.”

No branch was closed, while mail was delivered every single day – six days a week. For all this, the Board of Directors thanked staff most heartily.

“MaltaPost continues to look responsibly at its key role as Malta's leading postal services company and remains committed to providing a range of efficient and affordable quality services while also driving diversification initiatives.”

Employing a workforce of over 810 people is a responsibility MaltaPost does not take lightly, Mr Said commented, and “we consider it our duty to provide a rewarding workplace for our hard-working team while delivering a satisfactory return to our shareholders”.