Profit and turnover of Latvijas Pasts increased in 2016

25.07.2017

Profit and turnover of Latvijas Pasts increased in 2016

 

The financial and economic indicators of Latvijas Pasts increased in 2016 in comparison with the company’s operating results in 2015, according to the audited report of Latvijas Pasts for 2016. The net turnover of Latvijas Pasts in 2016 amounted to 62.7 million euro, while the net profit reached 3.6 million euro. The most significant increase in the provision of services is observed in areas such as letter post, which also includes small packet items from online stores, and express mail items. 

The net turnover of Latvijas Pasts in 2016 is 2 million euro higher than in the previous reporting period, while the net profit is 0.4 million euro more than in 2015. The most significant revenue growth has been achieved in service segments such as express mail services – special delivery items from hand to hand – and letter post, which statistically also includes small packet items of Internet commerce from East Asia, mainly China. 

“We are certainly pleased with the results achieved, but there is still a lot to do, so we may not stop even for a moment. The Board appointed in August last year had to address a number of urgent issues at the same time, starting with the provision of the company's infrastructure and the technical equipment required for operations, and ending with setting strategic goals and regaining the customer confidence. We are actively pursuing what we have started in 2017 as well, and we will continue to do so in the future,” Mārcis Vilcāns, Chairman of the Board of Latvijas Pasts, points out.

The number of items handled by the express mail service of Latvijas Pasts amounted to 1 million units in 2016, which is 65,000 items more than in 2015. The amount of express mail items that the customers chose to collect from the fuel stations of Statoil (Circle-K), a business partner of Latvijas Pasts, increased by almost 1000%. The year 2016 was marked by active action on the part of Latvijas Pasts, resuming, continuing or starting cooperation with e-commerce sector leaders in Latvia and the Baltic region, such as the online shops 220.lv, 1A.lv and – from 2017 – also Memberhop.

As far as the total volume of letter post items is concerned, incoming international small packets account for a significant share. Six million international incoming small packets were processed in 2016, which is 2.3 million units or 63% more than in 2015.

In the second half of 2016, when the new Board of the company took office, the volume of investment deployed by Latvijas Pasts increased significantly, amounting to 0.34 million euro and reducing the risk of loss of earnings or loss of market share, – emphasises the Council of Latvijas Pasts in its assessment of the company’s performance for 2016. A variety of long-term development projects were launched or continued in Latvijas Pasts in 2016, including in areas such as improvement of customer care, postal services and item delivery, creation of a more favourable environment for customers in the post offices and provision of earlier delivery of press obtained by subscription.

For example, in 2016 Latvijas Pasts started to introduce the multifunctional customer flow management system In-Out in the post offices, establishing this system in 31 post offices in both Riga and regional cities by the end of the year; in 2017 the system has been introduced in 16 more post offices, and its implementation will continue in other post offices too. A mobile app has been developed along with the customer flow management in the post offices, and it enables the customers to apply for postal services in a post office remotely.

In 2016 the concept of a customer-friendly post office was developed with the aim to create a more accessible environment for young parents and bicyclists. Its practical implementation started in 2017 with establishing the first new-parents-friendly post offices, introducing the principle of priority service of new parents and setting up special design children’s corners, which are made of Latvian wood and painted with eco-friendly paints. Furthermore, placement of bicycle racks of a special design solution next to the post offices in Riga has begun, assessing the flow of bicycle riders and accessibility of the post offices. Equipping of post offices with children’s corners and bicycle racks will continue not only in the capital, but also in Latvian regions.

From December 2016, after carrying out the analysis of delivery times, Latvijas Pasts revised the delivery options of press obtained by subscription and started to ensure earlier delivery of print media in a total of 47 cities and other populated areas, and in 2017 earlier delivery is additionally ensured in Jelgava and Mārupe. 

In 2017 Latvijas Pasts actively continues the implementation of modernisation and customer service improvement projects. These include the purchase of 41 new cargo vans for more efficient delivery of the universal postal service and express mail items, improvement of opening hours in 30 post offices in Riga and Pierīga (Greater Riga area) in order to increase the level of customer service, customer satisfaction measurements to identify the necessary improvements in the particular post offices, modernisation of Pāvilosta post office, etc.

The Board of Latvijas Pasts was appointed on the 1st of August 2016.


About SJSC Latvijas Pasts

Latvijas Pasts ensures the widest availability of postal services throughout Latvia by maintaining more than 600 post offices. The primary function of the company is provision of the universal postal service; Latvijas Pasts also provides commercial transport, express mail, payment, press subscription, retail and philatelic services. Latvijas Pasts is a wholly State-owned company with more than 4,200 employees. The quality measurements of Latvijas Pasts domestic mail deliveries are regularly conducted by Kantar TNS, one of the leading market, social and media research agencies in Latvia. In turn, the quality measurements of the cross-border deliveries are provided within the framework of the International Post Corporation through the intermediary of the research companies Kantar TNS, Ipsos and Quotas.
 

Additional information:
Gundega Vārpa
Head of External Communications 
Phone: +371 67608505
E-mail: pr@pasts.lv; gundega.varpa@pasts.lv
twitter.com/latvijas_pasts
facebook.com/latvijas.pasts

Customer service