Australia Post has posted a significant $200 million loss in its full-year results as the company flags turbulent times ahead for the company's financial sustainability.
The company recorded a steady $8.97 billion in group revenue but a significant $200.3 million in losses before tax in the 2023 financial year.
It is just the second pre-tax loss Australia Post has suffered since 1989.
"The headwinds Australia Post is facing into aren't new and it's my job along with the leadership team to transform and modernise Australia Post, so it can once again be a financially sustainable business," CEO Paul Graham said.
One of Australia Post's services that are seeing the most significant decrease year-on-year is its letter volumes of 2 billion, down 7.8 per cent on the previous year.
The postal service said Australian households now receive on average 2.2 addressed letters each week, down from 8.5 in 2008.
It expects this to halve in the next five years placing significant pressure on Australia Post to continue delivering its obligations.
But positively parcels and services saw a 0.9 per cent increase on the previous year taking in $7.3 billion in revenue.
Graham warned unless there is "favourable regulatory response" to modern services, Australia Post will continue to record significant losses.
"Inaction could result in a greatly devalued Australian asset," he said.
To address the financial headwinds, Graham said the company is putting in changes to its organisational structure to support its front line, simplifying operations, ensuring it has an effective retail footprint and reviewing its pricing to address losses across the letters sector of the business.
"Australia Post plays a critical role in the lives of all Australians," Graham said.
"A stronger, more viable Australia Post will be able to continue to meet the evolving needs of Australian communities."
It comes as a multitude of Australian corporations have recorded significant profits for the past financial year including Qantas posting a staggering $1.47 billion after tax in profits and supermarkets Coles and Woolworths with over $1 billion in profits.
