MaltaPost plc - Full-Year Results

On 19 December 2023, MaltaPost plc published its Annual Report and Financial Statements for the financial year ended 30 September 2023.

Revenues rebounded by 25.7% to €39.6 million largely reflecting the higher levels of international cross-border postal sales, which amounted to €20.6 million compared to €13.3 million in the previous year. Postal revenues remained the predominant source of income at 86% of total group revenues, with the rest of the income emanating from document management, insurance commissions, and philatelic sales.

In view of the higher level of business, operating costs increased by 20.4% to €37.1 million, largely driven by foreign direct mail costs. In fact, employee expenses remained practically unchanged at just over €15 million.

As a result, MaltaPost registered an operating profit of €2.63 million compared to the €0.99 million figure in the previous financial year, which translates into a higher EBIT margin of 6.6% compared to 3.1% in FY2021/22.

During the financial year under review, MaltaPost also reported a €0.37 million loss (FY2021/22: loss of €0.42 million) from its life insurance associate IVALIFE Insurance Limited, in which MaltaPost has a 25% stake.

Overall, MaltaPost reported a pre-tax profit of €2.32 million (FY2021/22: €0.64 million. After accounting for a tax charge of €0.44 million and profits to non-controlling interests of €0.04 million, the net profits attributable to MaltaPost’s shareholders amounted to €1.85 million compared to €0.27 million in the previous financial year.

The Statement of Financial Position as at 30 September 2023, when compared to the corresponding figures as at 30 September 2022, shows that total assets decreased by 5% to €47.4 million, which include cash and deposits with financial institutions totalling €6.9 million and financial investments of €2.3 million.  Total liabilities dropped by 18% to €18.5 million, largely reflecting lower payables. Overall, shareholders’ funds increased by 5.6% to €28.5 million, which translates into a net asset value per share of €0.367.

Dividend

The Directors recommended an unchanged (share spit-adjusted) final net dividend of €0.02 per share to all shareholders as at close of trading on Monday 8 January 2024. The dividend will be paid on 8 March 2024 subject to shareholders’ approval at the upcoming Annual General Meeting scheduled to be held on 9 February 2024. 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 €0.44 per share.

Outlook

In his commentary, the CEO of MaltaPost noted that while the drop in traditional letter mail volumes that was experienced over the past years is expected to continue at an even higher pace, MaltaPost sees opportunities to gain market share in reverse logistics through partnerships with international consolidators and retailers. The CEO explained that e-commerce traffic is expected to increase steadily in the next five years and the company is fully prepared to deliver the expected increase in parcel volumes.

MaltaPost is also reasonably confident that the Malta Communications Authority shall agree to the Automated Tariff Adjustment Mechanism. This will allow the company to continue to invest in its Universal Service Obligation business processes.

MaltaPost also plans to widen its business diversification programme with special focus on general and life insurance services as it prepares to offer these services through their network.