MaltaPost plc - Full-Year Results

On 19 December 2022, MaltaPost plc published its Annual Report and Financial Statements for the financial year ended 30 September 2022.

Revenues dropped by 16.9% to €31.5 million largely reflecting the decline in postal revenues (-20.5% to €26.2 million) which were affected by the full impact of Brexit and EU’s Removal of VAT exemption of all non-EU origin low-cost items. Nonetheless, postal revenues remained the predominant source of income at 83% of total group revenues.

Operating costs decreased by 15.7% to €30.8 million as a result of major cost reduction initiatives implemented by the Company notwithstanding increases in international postal tariffs, airfreight costs, and cost of labour.

As a result, MaltaPost registered an operating profit of €0.99 million compared to €2.48 million in the previous financial year, which translates into a lower EBIT margin of 3.1% compared to 6.5% in FY2020/21.

During the financial year under review, MaltaPost also reported a €0.42 million loss (FY2020/21: loss of €0.22 million) from its life insurance associate IVALIFE Insurance Limited, in which MaltaPost has a 25% stake.

Overall, MaltaPost reported a pre-tax profit €0.64 million (FY2020/21: €2.35 million). After accounting for a tax charge of €0.35 million, MaltaPost’s net profit for FY2021/22 amounted to €0.29 million compared to the €1.40 million figure reported in the previous financial year. The net profit for FY2021/22 translates into an earnings per share of €0.0076 (FY2020/21: €0.0372) and a return on equity of 1.0% (FY2020/21: 5.0%).

The Statement of Financial Position as at 30 September 2022, when compared to the corresponding figures as at 30 September 2021, shows that total assets decreased by 4.4% to €49.9 million as the lower amount of deposits with financial institutions (-€3.2 million) outweighed the higher levels of cash (+€0.52 million). Similarly, total liabilities decreased by 3.9% to €22.5 million. Overall, shareholder funds fell by 5% to €27 million which translates into a net asset value per share of €0.716 (30 September 2021: €0.754).

Dividend

The Directors recommended an unchanged final net dividend of €0.04 per share to all shareholders as at close of trading on Friday 13 January 2023. The dividend will be paid on 16 March 2023 subject to shareholders’ approval at the upcoming Annual General Meeting scheduled to be held on 16 February 2023. The Directors are giving shareholders the option to receive the dividend either in cash or by the issue of new shares at the attribution price of €1.09 per share.

Outlook

In his commentary, the CEO of MaltaPost noted that the postal trends that have been experienced over the past years are expected to continue, as parcel volumes increase while traditional Letter Mail maintains its downward turn. MaltaPost remains prepared to continue making the necessary capital investment to sustain the viability of the postal service, provided it delivers a fair rate of return. In this respect, the company remains committed to continue its internal cost-reduction programme.

MaltaPost also expects a positive response to the tariff revisions requests to the Malta Communications Authority (MCA) to continue with an efficient postal service. The CEO also stated that the primary focus on logistics, combined with the inroads made in document management and financial services augur well for the future.