MaltaPost plc - Full-Year Results

On 19 December 2024, MaltaPost plc published its Annual Report and Financial Statements for the financial year ended 30 September 2024.

Revenues increased by 1.3% to €40.1 million as the 4.1% increase in local revenues to €19.8 million outweighed the 1.2% reduction in international cross-border postal sales to €20.3 million. 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.

Operating costs (excluding depreciation) decreased by 4.9% to €33.4 million, as the decrease in foreign direct mail costs to €10.7 million (FY2022/23: €14.9 million) outweighed the rise in employee costs to €17.1 million from €15.1 million in the previous financial year.

As a result, MaltaPost registered a record EBITDA of €7.0 million compared to the previous record of €4.6 million in the previous year.

Depreciation and amortisation expenses surged by 26.2% to €2.49 million (FY2023/24: €1.97 million). Consequently, operating profit amounted to €4.53 million compared to the €2.63 million figure in the previous financial year, which translates into a higher EBIT margin of 11.3% compared to 6.6% in FY2022/23.

MaltaPost also reported a share of profit of €0.06 million (FY2022/23: loss of €0.37 million) from its life insurance associate IVALIFE Insurance Limited, in which MaltaPost has a 25% stake.

Overall, MaltaPost doubled its pre-tax profit to €4.68 million (FY2022/23: €2.32 million). After accounting for a tax charge of €1.71 million and profits to non-controlling interests of €0.07 million, the net profit attributable to MaltaPost’s shareholders amounted to a record €2.90 million compared to €1.85 million in the previous financial year, which translates into a return on equity of 9.55% (FY2022/23: 6.66%).

The Statement of Financial Position as at 30 September 2024, when compared to the corresponding figures as at 30 September 2023, shows that total assets increased by 11.2% (+€5.3 million) to €52.7 million, which include cash and deposits with financial institutions totalling €8.0 million and financial investments of €2.1 million.  Total liabilities rose by 5.2% (+€1.0 million) to €19.4 million. Overall, shareholders’ funds increased by 15% (+€4.3 million) to €32.7 million.

Dividend

The Directors increased the final net dividend for the first time since MaltaPost’s IPO in 2008 to €0.024 per share which is 20% higher than the €0.02 dividend attributable to the previous financial year. Nonetheless, in view of the higher level of profits, the payout ratio of 63% is lower than the level of 83% of the last financial year. The dividend will be paid on Thursday 20 March 2025 to all shareholders as at close of trading on Friday 17 January 2025 subject to shareholders’ approval at the upcoming Annual General Meeting scheduled for 20 February 2025.

Recent Developments

In his commentary, the Chairman of MaltaPost noted that the company has worked on addressing challenges posed by the changing postal and logistics landscape which have been brought about by technological advancements and shifting consumer behaviour. Furthermore, the Chairman noted the Malta Communications Authority (MCA) approved the revision of some Universal Service Obligation (USO) tariffs which positively impacted the financial performance and allowed for modest profits to be registered in the segment. Nonetheless, he highlighted that postal service tariffs in Malta remain the lowest in Europe. Moreover, the MCA has agreed to the Automated Tariff Adjustment Mechanism, which allow the company to improve its USO business processes.

Outlook

The CEO of MaltaPost stated that the company’s primary focus for the upcoming year will be to enhance its parcel delivery capabilities, further expanding its logistics hub network, and explore new opportunities to grow its footprint. Additionally, MaltaPost will continue to refine its insurance strategy.