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.
