THE SA Post Office has continued to deliver profits, it said yesterday as it released its results for the year ended March 2009.
During the year under review, Sapo maintained its unbroken six-year record of profitable trading by producing a R488million pre-tax profit.
"This is despite an extremely challenging financial year," it said.
Although profits declined slightly as a consequence of the depressed economy and the drop in postal volumes, the results showed Sapo had "continued to deliver steadily improving trading profits since its turnaround in 2004".
The year saw a 5,8percent decline in mail volumes, the first in seven years, the Sapo said.
"However, to counter the adverse conditions, Sapo embarked on a strategy of tighter cost controls and improving efficiencies across all its operations as well as exploring potential new revenue streams," it said.
Group chief executive Motshoanetsi Lefoka said the positive results achieved at a time of unprecedented turmoil in global markets indicated that the turnaround achieved by Sapo in the past five years had created a sound platform on which to grow further.
He said revenues for the 2009 financial year were up 8percent on the previous year to a total of R6billion. Operating expenses were up 10percent, reflecting Sapo's higher cost operating environment. As a result, the profit margin declined 2percent from 10,1percent in 2008 to 8,1percent, he said.
In spite of this, Sapo's total assets increased 13percent to R8,7billion. - Sapa