Maltapost plc is in the throes of an evolution that will see its product offering and service delivery upgraded to meet the changing demands of customers increasingly turning to e-commerce and online shopping, chief executive officer Joseph Gafà told The Sunday Times.
In its performance review for the year ended September 30, 2010, Maltapost said it would continue to streamline and update its strategy to ensure it remained innovative, efficient and competitive.
Mr Gafà explained that the company aimed to foster innovation in its processes and services, while seeking to leverage potential efficiency savings to improve competitiveness and profitable growth.
The chief executive said Maltapost saw considerable growth potential for developing innovative ways to improve the standard and variety of services that meet customers’ constantly evolving requirements. Innovation could include the development of strategic alliances with other postal administrations to create faster, more reliable and efficient solutions for online trading and shopping.
“It is vital that our commercial strategy and investment plans embrace the need to develop our staff,” he added. “Roles at Maltapost are constantly evolving: partly due to the need to compete, the increase in the use of new technology, and partly as we learn from our new partners and customers.
“We are also undertaking significant investments to ensure a robust ICT infrastructure to continue supporting and improving our service levels, facilitate work processes and add value.
“This should ensure that a highly responsive service is offered to customers through our branch network, which itself continues to be improved through a comprehensive refurbishment programme.”
The postal company’s stock was the best performer on the official list of the Malta Stock Exchange last year, reaching the €1 mark towards the year’s end, a 42.9 per cent gain. At €3.2 million, pre-tax profit for 2010 maintained 2009’s record levels, resulting in earnings per share of €0.07.
Mr Gafà said the company’s board, management and staff were committed to increasing shareholder returns sustainably in the medium to long term. This aim should be achieved while the company’s operations were compatible with the “specific and unique” role Maltapost had in the community.
He said Maltapost hoped its share price reflected its achievements, its future potential, and the continued support of its 2,300-odd shareholders.
Maltapost’s year-end results were particularly attributed to increased cross-border mail and higher philatelic sales, which together compensated for lower volumes in traditional mail. Mr Gafà added revenue increases were principally due to continued growth in priority and registered international letter packets and parcels, mainly associated with e-commerce.
“Enhanced” philately offerings and products created by Maltapost to satisfy local and international collectors’ demands led to higher sales.
The real impact of Maltese consumers’ increased activity online on Maltapost’s business translated into a nine per cent growth in parcel and packets activity. International letter post volume was up by six per cent over the previous year, while there was a corresponding increase of eight per cent in the total weight of international mail processed.
“This is a reflection of the changes in international commerce which is resorting to e-commerce at an increasing rate,” Mr Gafà pointed out. “The international postal industry is responding and adapting to this shift by offering existing and new supporting services to enable it to efficiently supply a quality and timely delivery service.”
Major investments last year included the expansion of the parcel unit at the company’s Marsa head office, which is nearing completion.
The Pietà, Birkirkara, and Għajnsielem branches have been refitted while a new branch on the University campus in Msida will be opened soon.
Security in branches has been upgraded with the installation of new counters featuring reinforced glass.
Maltapost’s board recently approved the acquisition of the company’s head office and another building in central Valletta to host Malta’s first postal museum.
Behind the scenes, Maltapost boasts a healthy balance sheet with €12.9 million in shareholders’ funds and €5.2 million in financial assets, while it seemingly maintains a zero debt policy.
The chief executive officer explained that the company’s strategy was to adopt a policy of investing in potential opportunities with a medium to long-term growth profile: these opportunities would be funded from internal cash flow and through debt finance. Each investment assessed on its own merits.
There had been mention of longer-term plans for the introduction of low-cost financial services when the company launched its initial public offering in 2008. Mr Gafà would only say that the company was focusing its attention on exploring new areas, including the introduction of such financial services, where it could work together with its parent company Lombard Bank to develop new services and continue to benefit from being part of a larger group.
“Announcements would be made at the appropriate time,” he said.