Ukrposhta doubles revenue in five years
Ian Kerr
Ukrposhta has almost doubled its revenue from 2016 to 2020.
The Ukrainian postal operator ended 2020 with UAH 9.2 billion (about €280m) in net income, an increase of 19% compared to 2019.
In 2020, Ukrposhta recorded increases in parcel volumes and revenues:
Parcel volumes increased by 24.7%
Small packages increased by 16.5%
Revenues from small packages increased by 47%
Revenues from parcels increased 42%
Costs relating to the pandemic and quarantine restrictions negatively affected Ukrposhta’s overall result. Letter volumes also fell in 2020 due to the temporary closure of government agencies and courts during quarantine.
Employee salaries account for 70% of total costs, an increase of 12% compared to 2019. Of this amount, more than 80% are the salaries of posties, operators and other workers.
“I am proud to say that we have doubled our revenue in national currency (from 4.6B to 9.2B) and almost doubled it in USD from 2016 to 2020. In a company where regulated tariffs impact 55%+ of revenue and, unfortunately, often at or below costs, it’s a result the team can be proud of.” - Igor Smelyansky, CEO Ukrposhta
Ukrposhta has also been able to pay dividends from its profits. It has also secured funding to build the company’s first automated sorting centres.
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