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Last year was a turning point for the company, Ukrposhta CEO says.
PJSC Ukrposhta, Ukraine's state-owned postal services provider, in 2019 received UAH 607 million (US$24.5 million) in net profit against of UAH 627 million (US$25.3 million) in loss posted in 2018.
At the same time, the company's net profit from sales of goods, works, and services stood at about UAH 8.1 billion (US$326.3 million), which was 18.7% up from 2018, Ukrposhta's press service said on March 2.
In particular, Ukrposhta's revenue from letters and small packages grew by 23.9%, from parcels by 22.8%, from money transfers by 20.5%, and from periodicals by 6.5%.
Moreover, the company in 2019 got UAH 69 million (US$2.8 million) in revenue from real estate rent, which was twice as much as in 2018.
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Over the period under review, labor costs rose by UAH 411.3 million (US$16.6 million) year-on-year, to UAH 4.7 billion (US$189.4 million), having amounted to UAH 5.8 billion (US$233.7 million) with charges on payroll, which accounted for more than 70% of the company's revenue.
Spending for operational staff, which grew by UAH 400 million (US$16.1 million) last year, accounted for over 80% of Ukrposhta's salary fund. The costs were allocated for production workers' wages, material incentives for operators, mail carriers, and heads of post offices and their deputies.
The average monthly salary of an Ukrposhta full-time employee in 2019 increased by 18% to UAH 7,443 (US$300), the report said.
Last year, the company also increased the mandatory deductions of taxes, fees, contributions and other obligatory payments to budgets and state trust funds by 14.4% against 2018, to almost UAH 2.5 billion (US$100.7 million).
"2019 was a turning point for the company. Despite often-unequal business conditions, a limited investment program, and complicated competitive conditions, Ukrposhta boosted its business volumes, received record profits, and was recognized as the world's best mail service in terms of export development, while Ukraine's stamp was first recognized as the best stamp in Europe and worldwide. All the achievements were obtained thanks to the joint work of Ukrposhta's team, that is over 65,000 people," the press service quoted Ukrposhta CEO Ihor Smilianskyi.
The official says the company's investment program for the first year in its history will exceed UAH 1.6 billion (US$64.5 million) due to an increased tariff for the delivery of pensions, as well as the ability to sell property and attract investors.
"This is the first step to switch to modern services, computerization, and digitalization across Ukraine within two years, which will be possible thanks to the introduction of mobile offices and, for the first time since 1980, the development of new modern sorting centers," the CEO summed up.
The final data on the company's performance in 2019 will be presented following an international financial audit, the press service added.
As UNIAN reported, Ukrainian Prime Minister Oleksiy Honcharuk earlier said he assumed partial sale of up to 10 large-scale state-owned enterprises that perform socially significant functions, including Ukrposhta.
UNIAN memo. Ukrposhta is the national operator of postal services under the authority of the Infrastructure Ministry. The company offers more than 50 types of services through over 12,000 offices across Ukraine. The company employs over 65,000 people.
Every year, Ukrposhta processes and delivers over 240 million items of mail and 16 million parcels, handling 15 million money transfers and 83 million transactions on pension payments.