MaltaPost plc - Full-Year Results

On 20 December 2021, MaltaPost plc published its annual report for the financial year ended 30 September 2021.

Performance Overview

During the financial year under review, MaltaPost plc registered an 11.3% increase in turnover to €37.9 million 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 total group 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).

Meanwhile, 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, which is 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 €2.35 million. After accounting for a tax charge of €0.95 million, MaltaPost’s net profit for FY2020/21 amounted to €1.40 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%).

The Statement of Financial Position as at 30 September 2021, when compared to the corresponding figures as at 30 September 2020, shows that 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 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 2022 subject to shareholders’ approval at the upcoming Annual General Meeting scheduled to be held on 16 February 2022.

Outlook

In his commentary, the CEO of MaltaPost noted 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. The CEO noted that the pandemic accelerated the postal trends of the past years, as parcel volumes continue to increase while Letter Mail maintains its downward trend.

Furthermore, whilst 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.

Download

MaltaPost plc – Annual Report for the financial year ended 30 September 2021.

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