MAILPAC Group Limited has posted unaudited revenues of $426.1 million for its second quarter ended June 30, 2021. This represents a 16.4 per cent or $59.9 million increase over the corresponding period in 2020.

Net profit for the period under review was $95 million, an 8.2 per cent increase over the previous corresponding period.

Operating expenses for the quarter were $103.7 million, coming in significantly higher than the $68.6 million incurred in the corresponding 2020 second quarter.

This growth in expenses, Executive Chairman Khary Robinson said, represented the increase in staff costs, advertising expenses, and store operating expenses which were incurred when the company significantly increased its processing capacity.

He added however that Mailpac has also started to benefit from the investments made to increase its capacity as margins have continued to improve each quarter.

Robinson noted that the company is now servicing more clients and processing more packages without any increase in fixed costs.

“This suggests that our business can continue its path of growth more cost efficiently, further increasing our margins and overall profitability,” Robinson said in the report to shareholders.

For the first six months of the year revenue was up 22.6 per cent to $896.1 million, while net profit also increased by 4.5 per cent to $198.4 million.

Total assets as at June 30, 2021 stood at $591.8 million with $191.3 million of cash on the balance sheet, while shareholders’ equity stood at $495.1 million with $275 million in dividends having been issued to shareholders year to date.

Despite this performance, Robinson said that as restrictions caused by the novel coronavirus shift in the coming months, Mailpac anticipates a potential reduction in consumer dependency on online shopping.

“Mailpac has attracted new clients throughout the pandemic but it may lose value from legacy customers that begin to travel and shop again if restrictions lift,” the executive chairman said.

He added however that the company remains poised for expansion opportunities into new markets and investments into new business lines, and will continue to “innovate and deliver greater service and solutions to ensure the long-term growth and success”.