Israel Post: 6% increase in revenue which amounted to NIS 429 million - profit only NIS 2.9 million

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by Ifi Reporter Category:Start Up May 29, 2021

The Israel Postal Company published its financial reports for the first quarter of 2021. The company recorded a 6% increase in revenue compared to last year, which amounted to NIS 429 million, but the company's operating cost - sales and services - is still higher than revenue and amounts to 434 million The company's net profit was NIS 2.9 million in the first quarter of this year, compared with a loss of over NIS 100 million in the corresponding quarter last year.
Israel Post is in an efficiency program that includes job cuts and asset sales, which affects its reports and causes volatility in the profit line. For example, the sale of assets generated NIS 35 million in revenue in the first quarter of this year, and transferred it to a net profit. The company sold properties for NIS 2.3 million.
The company also enjoyed a profit in the capital market of NIS 15 million in the current quarter, compared with losses in the corresponding quarter in 2020 of NIS 43 million.
Against the backdrop of the Corona crisis, the company saw a 40% increase in ordering packages from abroad in the first quarter of the year, compared to the same period last year. According to the company, from January to March 14 million packages According to the company, the costs of the services provided at regulated rates, such as delivery and distribution of mail, and the operation of branches result in a loss of about NIS 150 million a year.
From January to March, the company completed the significant part of the efficiency program - the company's headquarters move to the post office in Modi'in, as explained by Danny Goldstein, CEO of Israel Post. Of 300 employees - of whom 150 have already retired by the end of 2020. In the next two years another 150 employees will leave, and the company is financing the retirement plan through a bank loan it has taken out.
Goldstein explained that "even in the first quarter of the year we faced the challenges of the corona following the closure and closure of the sky in many countries, which made it difficult to import and export from Israel. At the end of the corona we had to deal with the security threat, while continuing to serve our customers. "And I thank the employees of the company, who acted with dedication even during this challenging period, while maintaining the health and well-being of the employees."
In the first quarter of 2021, Israel Post began operating the appointment scheduling service in advance, in order to streamline the service. According to the company, the average waiting time of a customer who booked an appointment in advance was 8 minutes on average. Out of 600 post offices throughout Israel, in about 200 postal units there is an obligation to book an appointment in advance. The company reports that this quarter, it provided service to 1.8 customers - a third of whom booked an appointment in advance.
Israel Post Board Chairman Hezi Zaig said that “the Corona crisis has hurt global trade activity, but has affected the consumption habits of the Israeli public, who learned to order online when stores were closed in the country, and became accustomed to ordering couriers, which created new opportunities for us. The process of privatizing the postal company, and selling 20%, also continues in the quarter, when we believe that the entry of an investor will help the company grow and better deal with the challenges of the future at the business level. "

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Moshe Strugano
Moshe Strugano / Apr 18, 2019

Thanks for sharing the information.

Moriah
Moriah / Dec 17, 2018

I seriously can't believe this! They can't even function as a normal postal service. A friend of mine went out of business because he couldn't deliver his products in a timely or correct manner due to our inferior post. I've had packages returned without even being notified that I received them. I have also had things delivered 6 months after sending. They need to get organized before they start any new ventures.

John Glucker
John Glucker / Dec 14, 2018

I thought the main task of postal service is to deliver letters and parcels within reasonable time. Delays in delivery in Israel have become almost an accepted norm. Last week I received a letted which had been sent to me (in Kfar Saba) from Tel Aviv A MONTH EARLIER. A registered letter I sent from Tel-Aviv took three weeks to reach Natania. Thus we are paying through a disastrous performance of the post office's basic task for some grandiose startups and commercials. I can on as many people as possible at least to register their protest.

Uzi lowenthsl
Uzi lowenthsl / Dec 14, 2018

Suggest that the postal authority in Israel get its own house in order first

Gary Dalin
Gary Dalin / Dec 12, 2018

Going for the moon while miserable at delivery in the final kilometer. The PO has strangled ISRAEL with “letter boxes” of 100 years ago of the Mandate Period. They know nothing about the US format of mail boxes which can accept packages. By converting this hardware, it will save 8.5 million Israelis from being required to spend an hour and travel at a post office. Please have someone at the PO administration call me for a demonstration to prove how it can save the country millions and turn around the entire system of package delivery. The country needs this desperately! 062-238-1414

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