Azerpost shares successes, acknowledging delays
Azerpocht LLC, the Azerbaijani postal service, recently held a briefing to unveil its achievements and financial results for the year 2023. Acting Chairman of the Board, Isi Mustafayev, highlighted the pivotal transformations and successes of the institution, emphasizing its focus on modernization and e-commerce development since 2021.
In a strategic move, Azerpocht successfully tested and launched three key projects in 2023. "Postcargo," catering to a customer base exceeding 20,000, facilitates the online delivery of products from Turkey, currently serving citizens through 1113 departments. The platform has expanded its services to include parcel delivery from the USA in a trial phase, with plans for a full-scale launch in the near future.
Mustafayev also highlighted Azerpocht's innovation in digital delivery through the introduction of the first mailbox with the az1000 index, exemplifying the institution's commitment to digitization. Automated mailboxes, equipped with self-service functions, operate 24/7, ensuring customer satisfaction.
The organization introduced POOD points with dedicated service facilities tailored for online order deliveries. Operating from 9:00 a.m. to 9:00 p.m. across approximately 50 stations, these points enhance the efficiency of online order logistics.
Addressing the postal infrastructure development, Mustafayev outlined ongoing efforts in the liberated territories, emphasizing the establishment of postal services in locations such as Hadrut, Jojug Marjanli, and Agaly. Plans are underway for the creation of a Khankendi postal branch, along with administrative buildings for postal services in Shusha, Lachin, Khojavend, and Askeran.
Financially, Azerpocht reported an annual income of 72.3 million manats in 2023, representing a 10% increase from the previous year. The net profit for the year amounted to 4.6 million manats, with EBITDA reaching 11.5 million manats. Operating expenses totaled 67.5 million manats, marking a 10% increase, primarily attributed to higher wage costs, influenced by a 17% minimum wage hike at the beginning of 2023.
Mustafayev informed that the institution has initiated the application of operational bonuses, aiming to enhance the monthly income of Azerpochta employees in 2023. Looking ahead, the primary objective for 2024 remains the improvement of the material well-being of employees, with a 15% increase in budget expenditures allocated to this goal.
Responding to queries from the media, Mustafayev acknowledged system delays within Azerpocht, attributing the issue to an outdated system. He assured that corrective measures would be taken to address and eliminate these delays.
Despite facing losses in previous years, Azerpocht has demonstrated a remarkable turnaround, achieving financial stability and profitability. Over the past three years, the institution's assets have surged nearly fivefold to 774 million manats, while customer balances have increased tenfold since 2020. Notably, Azerpocht transformed from a net loss of 7.7 million manats in 2020 to a net profit of 4.6 million manats in 2023, signaling a successful implementation of its latest strategic initiatives.