An Post announces five-year e-commerce and sustainability strategy

Irish postal operator An Post has announced strong revenue growth of 4% in 2023 to €922.9 million ($989.3 million) – driven mainly by a 14% increase in e-commerce parcel volumes compared to 2022 – and launched a new five-year business strategy, Green Light 2028.

The new strategy includes triple-digit growth in e-commerce; driving the circular economy, achieving An Post’s 2025 target of a 50 per cent reduction in emissions ahead of schedule and achieving net zero carbon emissions by 2030; further developing next-generation financial and postal services; and delivering An Post’s Digi Corp vision of digitally connecting customers in every community.

The Post Office delivered 52.7 million parcels in 2023, with an average of 23 parcels delivered per address, up from 10 parcels per address in 2019. It also handled 27% more parcel returns from customers to online retailers in 2023 compared with 2022, and reported 98% customs compliance for parcels from outside the EU, while €60 million ($64.3 million) was collected in customs revenue on behalf of the Irish state.

Strategic initiatives

The growth in e-commerce volumes forms part of the completed first phase of An Post’s transformation strategy and forms the basis of its Green Light 2028 strategy, which aims to grow An Post to a value of €1 billion (US$1.07 billion) with EBITDA of €100 million (US$107 million).

The strategy encompasses a number of strategic initiatives, including:

• E-commerce growth – building on the large international e-commerce contracts won in 2023, becoming an expert in international trade for Irish businesses, with projected triple-digit percentage growth across B2C, C2C and B2B channels over the next five years.
• Next-generation postal services, building on the success of electronic stamps, with guaranteed next-day delivery; a key strategy to drive the circular economy aims to further increase e-commerce parcel volumes by 15%. By establishing reuse and resale as a daily practice for people of all ages, the post office and postal services will become a driving force for selling and sending, reusing and recycling, using high-value products and services and zero-emission deliveries.
• Currently the largest electric vehicle fleet operator in Ireland, An Post will achieve net zero emissions by 2030 and will meet its 2025 target of a 50% reduction in emissions ahead of schedule. The majority of the HGV fleet will be converted to cleaner HVO fuel with a 91.8% reduction in carbon dioxide emissions. A further 750 electric vehicles are on order for 2024 to replace diesel vans.
• Taking financial services from a startup to a formidable challenger through partnerships, technology and leading products. This will include the first ‘dynamic CVV system’ in Ireland and the UK, which will help protect An Post current account customers from financial fraud.
• Delivering on An Post’s Digi Corp. vision, building the most sustainable, data-driven and future-proof networks; becoming experts in workforce design and delivery, leveraging AI to benefit customers, transforming operations and creating greater opportunities for the market.

Revenue generation and investment

An Post is investing €200m ($214m) of internally generated resources in its new Green Light 2028 strategy over the next five years. The company is forecasting new revenue generation of €260m-300m ($278m-321m) to compensate for the decline in mail volumes.

Commenting on the results and the Green Light 2028 strategy, David McRedmond, Chief Executive of An Post, said: “An Post is a vibrant commercial business that I am proud to say has returned to growth and positive cash flow with improved profitability, having completed the first phase of our business transformation, delivering on our key strategic objectives, all without government subsidy.

“I am excited to embark on the second phase of our transformation with our new Green Light Strategy 2028. It will focus our efforts over the next five years and accelerate the transformation of An Post into Digi Corp as we leverage our digitally connected workforce in every community, our rich data and the growing technology capabilities of the business. We will continue to deliver for the people and businesses of Ireland, while remaining committed to our fundamental purpose of working for the common good, now and for generations to come.”