Latvijas Pasts operated with a turnover of EUR 108.3 million last year


Latvijas Pasts operated with a turnover of EUR 108.3 million last year

The net turnover of SJSC Latvijas Pasts in 2023 reached the historically highest level of EUR 108.3 million, marking an increase of EUR 8.3 million, or 8%, compared to 2022. According to the annual report of Latvijas Pasts for 2023, the company’s net profit last year amounted to EUR 0.5 million.

In 2023, Latvijas Pasts continued to diversify its range of services, ensuring stable financial indicators and increased turnover in the provision of parcel, transit and express mail services. The initiated efficiency measures in transportation and item processing, together with the improvement of customer relations and the attraction of new customers, have all contributed to the demand for these services.

In 2023, Latvijas Pasts suspended transit mail to Belarus due to the geopolitical situation. Belarus had previously served as a significant destination for transit services. Despite this, Latvijas Pasts showcased its export capabilities in 2023, as evidenced by the trends of the share of export revenue in the turnover. In 2023, the export revenue reached EUR 37.1 million of the total net turnover, demonstrating an increase of EUR 1.2 million, or 3.4%, compared to the previous year. At the same time, Latvijas Pasts acknowledges that the future increase in export volumes will present challenges.

The turnover indicator was affected by the new tariffs for letter-post items and postal parcels, approved by the Public Utilities Commission, which came into force and have been applied from the 1st of January 2023, while the tariffs for subscription-based press delivery services took effect on the 1st of March 2023.

A total of EUR 5.5 million was recovered in 2022 as a result of value-added tax overpayment, impacting the net profit indicator favourably the year before last. In 2023, such overpayment was not recovered.

“The performance indicators for 2023 reinforce our confidence to change in order to become the first choice of Latvian customers for mail service. The intense competition in the mail industry, along with the geopolitical situation that has changed the scope of our transit business and many other challenges, prompt decisive measures to enhance efficiency and optimise costs. These actions are crucial for ensuring the sustainable growth of the national postal operator in the future. I would like to thank all customers of Latvijas Pasts for their cooperation, as well as all employees for their diligent and devoted work in 2023!” Beāte Krauze-Čebotare, Chairwoman of the Board of Latvijas Pasts, points out.

Across the globe, the postal industry is experiencing an annual decrease of 8%–14% in the universal postal service and other traditional postal services, such as letter and press delivery. There are also noticeable fluctuations in demand when it comes to press subscription services, unaddressed advertising mail and delivery of informative materials. National postal operators are implementing changes to their operating models, which involves exploring alternative solutions for the post offices whose attendance is decreasing year after year.

Therefore, in 2023, Latvijas Pasts began the process of transforming its operations, aiming to become a more customer-friendly and modern company. There are strategic changes underway to enhance the services provided, focusing on efficiency and high quality. Efforts are being made to improve item delivery and customer service, with a commitment to making these services more convenient and safely accessible for everyone, including those with functional disabilities. These improvements are expected to be completed by the end of 2026.

In order to improve the efficiency of its operation, Latvijas Pasts invested EUR 5.8 million in 2023, surpassing the previous year by EUR 2.7 million and achieving the highest investment amount in the past 6 years. The main goal of the investment is to enhance service efficiency and customer satisfaction, while also modernising logistics and item processing to ensure faster and more reliable delivery of items and guarantee the further development of Latvijas Pasts.

People’s expectations of the process, speed and quality of service delivery are shifting in this fast-paced technological age. Both business partners and customers are increasingly interested in promoting cooperation based on sustainability principles, so incorporating sustainability into the operation of Latvijas Pasts is critical not only for the implementation of the binding regulatory framework, but also for the competitiveness of the company’s services.

Latvijas Pasts has outlined its commitment to sustainability, focusing on the pursuit of energy efficiency, digitisation, employee well-being and growth in an inclusive and safe work environment, as well as efficient economic activity and financial viability.

In 2024, Latvijas Pasts is implementing ambitious changes and making targeted efforts to develop e-commerce in order to expand its operation on the scale of the Baltic states and beyond. Its development areas and objectives of the restructured operation are as follows:

•            to become the first choice of customers in the physical and digital environment;

•            to focus on item delivery, transit and financial services;

•            to develop modern, convenient and friendly services for customers.

It is anticipated that Latvijas Pasts will have the most extensive parcel locker network in Latvia in 2025, with around 500 parcel lockers in total. The company is improving item delivery processes, customer service and the functionality of the customer self-service tool Mans Pasts (My Post).

About SJSC Latvijas Pasts

Latvijas Pasts is a state-owned company that operates in the fields of postal services, logistics and financial services. The company specialises in domestic and international deliveries, ranging from e-commerce and parcels to press, letter-post items and personalised logistics solutions. Latvijas Pasts provides services to both private individuals and business customers, utilising reliable air, water and land transit connections. The national postal operator employs approximately 2,300 people on its team.

Latvijas Pasts takes care of the customer experience at more than 600 post offices across the country. The company is consistently introducing innovations and modern technologies, developing the country’s largest parcel machine coverage in 500 locations. The vision of Latvijas Pasts is to become the first choice of every Latvian resident for mail service.

Additional information:

Laila Kļaviņa | Head of Communications and Philately


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