MaltaPost plc turnover up by 11.3% to €37.9 million in 2020

MaltaPost plc registered €37.9 million in turnover for the financial year ended 30 September 2021, an 11.3% increase over 2020, as all revenue streams improved over the previous financial year which was heavily impacted by major disruptions due to COVID-19.

Postal revenues remained the predominant source of income at 87% of the group’s total revenues.

The total revenue for the financial year ended 30 September 2021 also included €0.4 million in insurance commission following MaltaPost’s diversification strategy to operate within this sector through PostaInsure Agency Limited (formerly Untours Insurance Agents Limited).

Other income amounted to €0.37 million (2020: €0.48 million), largely comprising of COVID-19 related grants.

Operating costs increased by 12.9% to €35.8 million reflecting higher international postal tariffs payable to postal operators at destination, air freight costs, and salaries.

As a result, MaltaPost registered an operating profit of €2.48 million, 12.7% lower than the previous year’s comparable figure.

During the financial year under review, MaltaPost also reported a €0.22 million loss (2020: loss of €0.15 million) from its life insurance associate IVALIFE Insurance Limited, in which MaltaPost has a 25% stake.

Meanwhile, net interest receivables remained at similar levels to last year at €0.09 million.

Overall, MaltaPost reported a pre-tax profit of €2.35 million.

After accounting for a tax charge of €0.95 million, MaltaPost’s net profit for FY2020/21 amounted to €1.4 million, which is 20.7% lower than the €1.76 million figure reported in the previous financial year.

The net profit for FY2020/21 translates into an earnings per share of €0.0372 (FY2019/20: €0.0468) and an annualised return on equity of 5.0% (FY2019/20: 6.5%).

According to MaltaPost’s Statement of Financial Position, its total assets increased by €5.6 million (+12.1%) to €52.2 million largely due to the increases to property, plant and equipment as the Group continued to invest in its branch network.

Similarly, total liabilities increased by €4 million (+20.8%) to €23.4 million mainly due to higher trade and other payables.

Overall, shareholder funds expanded by 4.4% to €28.4 million which translates into a net asset value per share of €0.754 (30 September 2020: €0.721).

Dividend

The Directors have recommended an unchanged final net dividend of €0.04 per share to all shareholders as at close of trading on Thursday 13 January 2022.

The dividend will be paid on 16 March subject to shareholders’ approval at the upcoming Annual General Meeting scheduled to be held on 16 February.

Outlook

MaltaPost CEO Joseph Gafa’ said that the outlook for the coming year is set to remain challenging and difficult to forecast following the onset of yet another COVID-19 variant.

He said the pandemic accelerated the postal trends of the past years, as parcel volumes continue to increase while Letter Mail maintains its downward trend.

Gafa’ said that although the company remains committed to its Universal Service Obligation (“USO”), MaltaPost shall continue to request that the Malta Communications Authority (MCA) revise the pricing of the loss-making service that it provides under the USO.

Meanwhile, MaltaPost continues to manage other non-postal lines of business to further supplement its core activity with distinct revenue streams, including logistics, document management, insurance and financial services.

Principal activities

The MaltaPost Group comprises MaltaPost p.l.c. (the Company) and its subsidiary companies, Tanseana Limited (Tanseana), Ciantar Brothers Limited, Postalnsure Agency Limited (Postalnsure), and its associate company IVALIFE Limited.

MaltaPost p.l.c. was registered in 1998 and listed on the Malta Stock Exchange (MSE) in 2008. The Company is a public limited liability company under the provisions of the Companies Act (Cap. 386).

As the designated Universal Service Provider, MaltaPost provides a series of universal postal services in terms of the Postal Services Act (Chapter 254 of the Laws of Malta) and in line with the terms of the Universal Postal Union on behalf of the Government of Malta. The company operates a network of six postal hubs, 42 post offices and 26 sub-post offices around Malta and Gozo .

Tanseana, a company wholly owned by MaltaPost, was registered and commenced operations in 2016. The company was established to provide document management services and to carry on such services which include, but are not restricted to, scanning, printing, shredding, storage and retrieval of digital and/ or physical documents.

Ciantar Brothers Limited, a company wholly owned by MaltaPost, provides warehousing services.

Postalnsure, a company 49% owned by MaltaPost p.l.c. was granted enrolment in the agents list to act as an insurance agent under Article 13 of the Insurance Intermediaries Act (CAP 487).

IVALIFE Insurance Limited, formerly IVALIFE Limited, a company 25% owned by MaltaPost p.l.c. was licensed on 1 February 2021 to provide Class I and Class Ill long term business of insurance.