PM: Georgian Post expected to turn a profit for first time this year

Georgian Post is expected to record a profit for the first time this year after a series of cost-cutting and operational changes, Prime Minister Irakli Kobakhidze said.

Kobakhidze noted the postal operator had recorded losses in previous years, including 7m lari last year, but a number of reforms had changed its financial outlook.

He said 2.5m lari had been saved through staff optimisation and a further 1.1m lari through the restructuring of loss-making service centres.

The official stressed services previously outsourced to intermediary companies have been brought back under Georgian Post, which is expected to generate an additional 14.2m lari in annual revenue.

He alleged that the intermediary arrangements had created opportunities for corruption, saying the relevant authorities would determine whether any wrongdoing had taken place.

Kobakhidze also said Georgian Post had restored the operation of its air terminal, which is expected to generate another 1.3m lari in revenue.

The company has also signed contracts with international businesses, including Turkish Airlines, while negotiations are under way with five other airlines. The prime minister said these agreements could increase Georgian Post’s revenue by a further 4.4m lari.

“This year will be the first year when Georgian Post makes a profit, and the following years will be even more profitable once all these processes are completed,” Kobakhidze said.