Latvian Postal service reports 2 million euro profit in 2022

Take note – story published 1 year ago

In 2022, state-owned "Latvijas pasts" (Latvian Postal Service, LP) worked with a turnover of €100 million, 5.1% less than in the previous year. The postal service ended the last year with a profit of €2.2 million. By comparison, in 2021, the company worked on losses of €1.2 million, according to a 2022 audited report by LP on May 18.

Last year, the company's net profit amounted to €2.2 million, while turnover decreased by 5.1%. The Latvian Post turned over €105.35 million in 2021, the historically highest figure, and worked on losses of €1.2 million.

Following Russia's invasion of Ukraine and the sanctions imposed on the aggressor state, there is a sharp drop in shipments across several service groups. The flows of cross-border shipments with countries involved in the war are particularly affected.

The operation was also affected by the clearance arrangements laid down in the European Union as of July 1 2021 and by the tax on third-country consignments from the first cent. 

LP saw increased revenue in freight transport and mail transit services last year.

The increase in transport costs was €1 million in 2022. Compared to 2021 figures, these costs increased by €1.4 million.

Last year, the company invested €3.1 million to expand the network of parcel machines. This year more parcel machines will be installed. This year, the company has purchased 105 new electric vehicles and 340 new cars for mail delivery purposes.

LP is a company wholly owned by the State, which employs around 2,700 employees.

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