MaltaPost CEO credits ‘strategic pivot’ for increasing profits amidst decline in traditional mail volumes

MaltaPost more than doubled its pre-tax profits in the last financial year, driven by a marked increase in the parcel delivery business, largely due to a surge in ecommerce.

The “strategic shift towards logistics”, said CEO Joseph Gafà in the company’s latest annual financial statements, has successfully offset the challenges presented by a decline in traditional mail volumes.

He added that the company is “particularly pleased” with the profitability gains achieved through higher efficiencies, leading costs to drop by 3.2 per cent despite a substantial 13.7 per cent increase in labour costs.

Mr Gafà took the opportunity to look back at MaltaPost’s achievements throughout the last financial year ending on 30th September 2024, saying the company had positioned itself as a “reliable, innovative, and sustainable leader in Malta’s postal and logistics landscape.”

During the year under review, he continued, the company continued optimising its operational infrastructure, while significant upgrades are planned for its sorting facilities to increase throughput and manage processing times better.

“Our last-mile delivery network has also seen marked improvements, particularly through the implementation of a unified stream for both letter mail and select parcel deliveries. This initiative has significantly boosted our delivery capacity, enabling us to better serve the surge in ecommerce shipments,” he said.

Mr Gafà said the increase in ecommerce has “reshaped [MaltaPost’s] business model,” leading it to strengthen its partnerships with consolidators and logistics providers and its retail network of 41 post offices and 20 sub-post offices.