During the year under review, the Sapo maintained its unbroken six-year record of profitable trading by producing a R488 million pre-tax profit.<\/p>\n
“This is despite an extremely challenging financial year, which saw turmoil in international financial markets reduce postal revenues and hike input costs,” the Sapo said.<\/p>\n
“The strong results strengthen the case for improved delivery at the Sapo.”<\/p>\n
Although profits declined slightly as a consequence of the depressed economy and the drop in postal volumes, the results showed the Sapo had “continued to deliver steadily improving trading profits since its turnaround in 2004”.<\/p>\n
The year saw a 5.8 percent decline in mail volumes, the first in seven years, the Sapo said.<\/p>\n
“However, to counter the adverse conditions in the trading environment during the past financial year, the 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.<\/p>\n
Group chief executive officer, Motshoanetsi Lefoka said the positive results achieved at a time of unprecedented turmoil in global markets indicated that the turnaround achieved by the Sapo in the past five years had created a sound platform on which to grow further successes.<\/p>\n
“The positive results are a means to the end of improving delivery towards a world class postal, logistics and financial services to all South Africans,” Lefoka said.<\/p>\n
He said revenues for the 2009 financial year were up eight percent on the previous year to a total of R6 billion<\/p>\n
“However, profit before tax declined 14 percent on the previous year –from R565 million to R488 million — as a result of higher input costs, especially fuel and salary costs.”<\/p>\n
Operating expenses were up 10 percent, reflecting the Sapo’s higher cost operating environment.<\/p>\n
As a result, the profit margin declined two percent from 10.1percent in 2008 to 8.1 percent, he said.<\/p>\n
In spite of this, the Sapo’s total assets increased 13 percent to R8.7 billion, Lefoka said.<\/p>\n