MAILPAC Group is keen on exploring opportunities created by the boom in e-commerce across the Caribbean.

While there were no significant changes in the company’s revenue for 2021, Executive Chairman Khary Robinson shared that “Mailpac is more focused and better equipped to meet its long-term goal of becoming a regional leader in e-commerce fulfilment.”

“Through a mix of organic initiatives and acquisitions or investments, we expect Mailpac to efficiently capitalise on the inevitable long-term growth in the e-commerce sector within the Caribbean region,” he continued in his report to shareholders.

For the year ended December 31, 2021, the group reported a 5.4 per cent increase in revenues to $1.8 billion. However, over the final three months, revenues dipped two per cent relative to the same period in 2020, ending at $501.7 million.

Robinson explained that revenues remained relatively flat as e-commerce activity returned to normal levels following a spike in 2020 due to Government-mandated restrictions of movement and travel.

“Accordingly, these limitations pushed consumers to buy more of their goods online and the share of wallet of online shopping got an atypical amount. This was seen globally as Amazon reported a similar bump in traffic,” he told the Jamaica Observer.

As the growth in e-commerce drove an increased demand for Mailpac’s services, the company resorted to onboarding new talent, streamlining processes and improving its delivery infrastructure. In September last year, the group announced it would improve its offerings to customers with the introduction of lockers and a grocery e-store.

Operating costs for the group jumped by $102.1 million or 30 per cent over the 12-month period relative to 2020, with selling and promotion costs rising by 28 per cent and administrative and general expenses up 30 per cent. For the fourth quarter, operating expenses jumped 17.8 per cent to $129.8 million.

“This increase reflects the costs of our enhanced processing capacity, improved customer service capacity, additional store locations, and amplified brand marketing. This is aligned with Mailpac’s stated commitment to invest in expanding footprint as the e-commerce logistics provider of choice for Jamaican consumers,” the chairman outlined, adding that the group has embarked on rationalising some costs.

Having improved the company’s operational capacity, “we are refocusing on our growth initiatives”, Robinson told Sunday Finance.

The capital investment has contributed to a 10 per cent increase in net income for Q4 2021, which stood at $114.6 million. However, for the 12 months Mailpac’s profitability declined by 9.7 per cent to $400 million.

Notwithstanding, Robinson told shareholders that he is “pleased with the performance of Mailpac”.

“…Mailpac is now repositioning itself. More specifically, the company will move on from its investments in infrastructure that was required to meet the spike in demand from the pandemic and focus squarely on long-term steady growth expected from participating as the leader in the Caribbean’s e-commerce industry,” he added.

As at December 31, 2021, Mailpac’s total assets increased by 25 per cent over the 12 months as property, plant and equipment and rights-of-use assets contributed significantly to the growth.