Robinson: Declining consumer confidence may affect Mailpac’s results
Executive chairman of the Mailpac Group, Khary Robinson.
Khary Robinson, Executive Chairman of Mailpac Group Limited says declining consumer confidence may affect the courier company’s results in its third quarter.
Robinson has already noted some impact in its second quarter and has expanded delivery infrastructure as one strategy to mitigate this change.
The company head said that though performance in the second quarter was pleasing, with the Mailpac continuing to “lead the e-commerce market in innovation and service,” towards the end of the quarter, “the rapid spread of COVID-19 led to lower consumer confidence and limitation on consumer movements, which has had varied impacts on Mailpac’s e-commerce platform,” Robinson stated.
Revenues for the quarter stood at $364.7 million, which is 0.8 per cent higher than the previous quarter ending December 31, 2019. Gross profit for the quarter was $183.3 million, which represents a reduction relative to the previous quarter.
Net profits for the three months to March 2020 was $101.911 million compared to $86.28 million in the first quarter ended December 2019.
It should be noted that Mailpac Group started trading on October 1, 2019. Accordingly, the financial statements have no comparative period for 2019.
Robinson told shareholders in comments attached to the March results, “While we anticipate that the crisis will present challenges and opportunities for our industry, Mailpac’s strategy will continue to be focused on delivering the highest level of solutions and service to the consumer market through e-commerce.”
He noted that the company has “taken all the necessary measures required to ensure the continued safety and wellness of our team and our customers.”
Mailpac, he said, has “substantially” expanded delivery infrastructure and have employed various in-store strategies to limit person-to-person contact.”
Operating expenses for the second quarter comprised mostly of staff, advertising, and store operating costs, totalling $76.1 million, coming in significantly lower than the previous quarter.
Robinson noted that net income at $101.9 million surpassed the final quarter of the previous year “when most consumer shopping occurs.”
The executive chairman said the amalgamation of both business lines, Mailpac Services and Mailpac Local, have continued to generate operating efficiencies for Mailpac Group.
Total Assets at the end of the quarter stood at $534.5 million, with $194.4 million of cash on the balance sheet at the end of the period.
Shareholder’s equity stood at $455.5 million at the end of Q1 2020.