Ukrposhta was profitable in Q4 2024 but ended year with 'paper' loss

MOSCOW. Jan 31 (Interfax) - Even though Ukrposhta's operations in the fourth quarter of 2024 were profitable for the first time since the start of the crisis, and the company improved its EBITDA and operating revenue results, it still ended the year with "paper" loss.

"I hope that we will maintain and will develop this success," Ukrposhta CEO Igor Smilyansky told Ukrainian media.

Even despite Ukrposhta's positive EBITDA and operating revenue results seen in 2024, the company, same as in the previous two years, posted net loss due to currency exchange rate fluctuations, Smilyansky said.

"I'd say that it is truly a 'paper' loss. Ukrposhta has a loan from the [European Bank for Reconstruction and Development] EBRD, which it has to repay in eight years. It is in euros and enhances Ukrposhta's dependence on sharp forex exchange rate fluctuations. On the other hand, the company generates its own forex revenue servicing 60% of the international parcel market," he said.

Last year, Ukrposhta invested UAH 1 billion of its own funds in the transition to a fully automated parcel sorting system, and did not receive any support from the state.

"In Europe, there are only two postal services that do not get state subsidies - DHL and Ukrposhta. All the rest have support from the state budget. For instance, the Polish Post received 175 million euros, and Belgium's postal operator 125 million euros for the year. Ukrposhta hasn't received a kopeck from the state," Smilyansky said.