Georgian Post to return to profit for first time after reforms, Georgian PM

Prime Minister Irakli Kobakhidze on Wednesday claimed the Georgian Post is set to become profitable for the first time following a series of reforms, despite recording a loss of seven million lari last year.

Speaking at a government meeting, Kobakhidze said major operational changes introduced over the past five years had transformed the state-owned postal operator and would allow it to move into profit.

He noted that Georgian Post’s management was replaced in September last year and said the company had since achieved significant measurable results, similar to reforms undertaken at other state enterprises.

He further noted optimisation measures already implemented and under way will save more than 3.5 million lari annually.

He added that business processes previously outsourced to intermediary companies were being brought back in-house, a move expected to generate an additional 14.2 million lari in annual revenue.

Kobakhidze also said the company has restored the function of its air terminal and is in the final stages of signing agreements with new airlines, while renegotiating terms with existing carriers.

As a result, he said terminal servicing costs have been reduced and transit times shortened.

The prime minister noted that operations at the air terminal alone will provide Georgian Post with more than five million lari in additional annual revenue.

Kobakhidze also noted the combined effect of the reforms means the company, which ended last year with a seven million lari loss, will now move into profit and become a profitable state enterprise.