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06.07.2016
Latvijas Pasts investment plan for 2015 was not fulfilled by almost 70%, which means that no investments in the development of the company were made during this period of time. Thus, although Latvijas Pasts was able to produce savings in the previously mentioned reporting period, suspension of investments may negatively affect the future financial performance of Latvijas Pasts, such as – failing to acquire a market share and the relevant revenue or being unable to reduce operating costs. This statement was made by Latvijas Pasts Council in the assessment of the fulfillment of the company’s objectives in 2015.
Latvijas Pasts net turnover in 2015 was EUR 60.7 million, and this amount is about EUR 3 million less than previously projected; in comparison to the reporting period of 2014, net turnover decreased by EUR 0.8 million. The company’s net profit for that period was calculated EUR 3.2 million, but that was mainly influenced by the reduction of operating costs, which was primarily a result of lack of investments.
To prevent the risks outlined by the Council as well as to strengthen the competitiveness of Latvijas Pasts, ensure more efficient mail delivery and processing and improve customer convenience, the investments planned in 2016 will focus not only on modernization and development of technological processes, but also on upgrading and reconstructing a number of postal offices and sorting facilities. Investments are also needed to implement in production the international e-Commerce Interconnect Programme (eCIP), in which Latvijas Pasts is participating in cooperation with other designated postal operators and foreign partners.
In 2016 Latvijas Pasts will continue to develop the company’s main activities with a particular focus on the profitability of services and improvement of the quality and work organization. During this year it has also been planned to optimize the administration of Latvijas Pasts by reviewing the competences and levels of responsibility of the company’s departments and reducing the duplication of functions and unnecessary bureaucratic procedures.
About SJSC Latvijas Pasts
Latvijas Pasts ensures the widest availability of postal services throughout Latvia by maintaining more than 600 post offices. The primary function of the company is provision of the universal postal service; Latvijas Pasts also provides commercial transport, express mail, payment, press subscription, retail and philatelic services. Latvijas Pasts is a wholly State-owned company with more than 4,200 employees. The quality measurements of Latvijas Pasts domestic mail deliveries are regularly conducted by TNS Latvia, one of the leading market, social and media research agencies in Latvia. In turn, the quality measurements of the cross-border deliveries are provided within the framework of the International Post Corporation through the intermediary of the research companies TNS, Ipsos and Quotas.
Additional information:
Gundega Vārpa
Head of External Communications
Phone: +371 67608505
E-mail: pr@pasts.lv; gundega.varpa@pasts.lv
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