In January-September 2023, Ukrposhta JSC reduced its net loss by 15% compared to the same period last year – to UAH 594.8 million, according to the company’s report in the information disclosure system of the National Securities and Stock Market Commission (NSSMC).
According to the report, the state-owned company’s net income increased by 12% to UAH 8.36 billion.
The company’s operating expenses increased by 11.4% to UAH 9.3 billion. In particular, material costs increased by 27.9% to UAH 1.1 billion, and labor costs by 11.9% to UAH 4.5 billion. Social contributions increased by 3.8% to UAH 986.6 million. Depreciation and amortization increased by 23.9% to UAH 510.9 million. Other operating expenses increased by 4.6% to UAH 2.2 billion.
Long-term loans from banks increased by 4.3% to UAH 863.11 million in the first nine months of the year. Short-term loans remained unchanged at UAH 3.38 million.
The report also notes that as of September 30, the company violated financial covenants under a loan agreement with the European Bank for Reconstruction and Development (EBRD). It is specified that in September, Ukrposhta received confirmation from the EBRD of the bank’s intention not to charge long-term repayment on the loan and the risk to the company is minimal.
“The EBRD management has confirmed its intention to further cooperate with Ukrposhta in the implementation of projects. Accordingly, the EBRD loan liability was classified as non-current as of September 30, 2023,” the report says.
According to the report, Ukrposhta continues to operate in the context of the military conflict with Russia. As of the reporting date, parts of Donetsk, Luhansk, Kherson, and Zaporizhzhia regions remain occupied, with about 12% of post offices located there. As of September 30, the company has 27.36 thousand points of presence, employing 35 thousand employees (in the first half of the year there were 25.5 thousand points of presence and 45 thousand employees).
The company also reported that it has UAH 3.3 million of C series bonds at par with a maturity date of November 18 this year.
Earlier it was reported that in the first half of the year Ukrposhta increased its net loss by 27.0% compared to the same period last year to UAH 653.7 million. Its net income increased by 20.0% to UAH 5 billion 580.13 million.
In January-June 2023, Ukrposhta JSC increased its net loss by 27.0% compared to the same period last year, to UAH 653.7 million.
According to the state-owned company’s report in the NSSMC information disclosure system, its net income increased by 20.0% to UAH 5 billion 580.13 million.
It is noted that in the first half of this year, the Pension Fund remained the only client whose revenues exceeded 10% of Ukrposhta’s total income. The amount of remuneration from it for the delivery of pensions and other social benefits amounted to UAH 1.421 billion against UAH 1.423 billion for the same period last year.
It is specified that revenues from the provision of national postal services increased by 33.2% to UAH 3 billion 2.92 million. In particular, from the delivery of parcels and small packages – by 46.5% to UAH 1 billion 581.85 million, from the distribution of written correspondence – by 3.1% to UAH 667.46 million, from international postal exchange – almost 2.1 times to UAH 456.57 million, while from prepaid registration and delivery of periodicals decreased by 45.1% to UAH 103.7 million.
Financial and related services brought Ukrposhta UAH 2 billion 89.83 million in January-June 2023, only 0.3% more than in January-June 2022, largely due to the stability of the Pension Fund’s remuneration.
At the same time, revenues from postal transfers increased by 75.9% to UAH 130.9 million, while payment acceptance brought in 7.1% less, to UAH 497.37 million.
Finally, sales of own and commission goods increased by 54.6% to UAH 486.62 million.
“Ukrposhta noted that the share of foreign revenues in its revenue increased to 8.2% in the first half of this year from 4.7% in the first half of last year and totaled UAH 456.57 million. In particular, revenues from counterparties in Latvia jumped almost 4.4 times to UAH 228.17 million, in Estonia – 62 times to UAH 56.63 million, in Poland – 2.3 times to UAH 28.4 million, in Germany – 33.8% to UAH 15.48 million.
In the first half of 2023, the company managed to achieve a gross profit of UAH 31.15 million, compared to a gross loss of UAH 32.3 million in the first half of 2022.
However, due to an increase in administrative and sales expenses, the operating loss even slightly increased compared to the same reporting period last year – by 9.8% to UAH 747.04 million.
It is reported that as of June 30, 2023, Ukrposhta’s current liabilities exceeded its current assets by UAH 2.81 billion, while as of December 31, 2022, they exceeded its current assets by UAH 1.97 billion.
The company noted that it continues to operate amid the military conflict with Russia. As of the reporting date, parts of Donetsk, Luhansk, Kherson, and Zaporizhzhia regions remain occupied, with about 12% of post offices located there. Currently, there are almost 25.5 thousand points of presence (45 thousand employees), the report says.
It is noted that Ukrposhta continues to implement major strategic investment projects. In particular, the transition to mobile offices in rural areas has been completed – the project was implemented with the support of the European Bank for Reconstruction and Development. The next step is to automate mobile branches by the end of 2023, which will allow Ukrposhta to fully automate its network.
The company also announced the implementation of the ERP system module, and the transition to a new centralized structure without separate branches is scheduled to be completed in the third quarter of 2023. In addition, other critical back-end and transactional IT systems are being gradually updated to improve the quality of service delivery.
“After a certain pause due to the Russian aggression, Ukrposhta has resumed the project to modernize the logistics network (renting modern logistics centers and installing new sorting equipment). 3 parcel sorting lines have already been launched and full automation of the main sorting hubs covering the entire country is planned for the first quarter of 2024,” the report says.
It is also noted that in 2021, the company entered into a preliminary agreement for the purchase/sale of a controlling stake in one of the private commercial banks to be able to provide banking services in the branch network. “The transaction will take place only if the National Bank of Ukraine authorizes it and other terms of the agreement are fulfilled. As of the date of approval of the financial statements, the company’s management has not received the relevant permits,” Ukrposhta said.
As for the bonds, the company reported that it has UAH 3.3 million of C series bonds at par with maturity on November 18 this year.
On August 24, Ukrposhta, the Ukrainian state postal service enterprise, announced its intention to conclude a contract with Guardian Insurance Company for the provision of compulsory motor third party liability insurance (MTPL).
According to the Prozorro electronic public procurement system, the company’s price offer amounted to UAH 681,743 thousand, with the expected value of the tender at UAH 2.166 million.
The tender was also attended by European Insurance Alliance (UAH 1.003 million) and Krayina (UAH 1.077 million).
Guardian Insurance Company has been operating in the insurance market since 2007.
The Ukrainian State Postal Communications Enterprise (USPS) Ukrposhta (Kiev) is holding a tender for services of compulsory insurance of civil liability of owners of motor vehicles (OSAGO).
As reported in the electronic public procurement system “Prozorro”, the expected cost is -1.085 million UAH.
Documents are accepted until July 25.
As reported, the winner of a similar tender was IC “Guardian”.
State joint-stock company “Ukrposhta” from July, 1 will increase tariffs for sending parcels, but claims that they will remain lower than the prices of competitors by 20-30 %.
“The company was able to adjust to the new strict conditions. Even after the cost review, Ukrposhta’s rates will remain 20-30 percent lower than competitors,” the company said in a press release Friday.
According to it, the cost of delivery of items “Ukrposhta Express” will be increased on average by 10 UAH for items sent within one region and by 8 UAH – for items sent within the whole country. At the moment the cost of delivery “Ukrposhta Express” is within the city from 40 UAH for delivery up to 1 kg.
The company points out that since July 1, will also operate new tariffs for services “Ukrposhta Standard”, where the average increase is UAH 7 USD for delivery within Ukraine and UAH 10 – within a single region. In particular if now the delivery cost of parcel with the weight to 1 kg within Ukraine is 35 UAH, then after review it will increase to 42 UAH and the delivery of parcel from 5 to 10 kg will cost 70 UAH instead of 60 UAH.
In “Ukrposhta” noted that the cost of the service “Ukrposhta Documents” and the cost of courier pickup or delivery will increase by 5 UAH. The cost of the service for delivery of documents now is 45 UAH per 1 kg, including 30 UAH for the address fee.
At the same time, the company indicated that a flexible discount system will continue to operate for corporate clients of “Ukrposhta”.
According to the national postal operator, since July, 1 will also increase the cost of delivery of “small recommended packages” on all zones and parcels to seven countries of the Middle East (Algeria, Afghanistan, Qatar, Kuwait, Oman, Saudi Arabia and Tunisia).
“These changes will be 10% of the current rates. This is the first price revision for international shipping due to external factors,” the company said.
Foreseeing possible changes, “Ukrposhta” prepared a service of priority delivery “small packages Prime” in 70 key countries of the world, the release said. According to it, its use will allow the customer to get a tariff that is lower than the current one by up to 18%.
The Ukrainian state postal enterprise Ukrposhta (Kyiv) announced a tender for compulsory civil liability insurance (CMTPL) on June 13.
As reported in the electronic public procurement system “Prozorro”, the expected cost -672.354 thousand UAH.
Documents will be accepted until June 19.
As reported, the winner of a similar tender was IC “Guardian”.
