Investments, Latvia, Post Office

In 2015, Latvijas Pasts did not invest in the company's developments, which can leave a negative impact on its future financial results.

The national postal company's turnover contracted by EUR 800,000 to EUR 60.7 mln last year, falling EUR 3 mln short of the annual target. The company generated EUR 3.2 mln in profit last year, but mainly thanks to reducing operating costs by not making the planned investments.

"To address the risks identified by the supervisory board, strengthen Latvijas Pasts competitiveness, ensure the efficiency of mail deliveries and processing and to improve client service, investments are being planned for 2016 not only in technology upgrades and development but also in the modernization and reconstruction of several post offices and sorting centers. Investments are needed in order to launch e-Commerce Interconnect Program in which Latvijas Pasts is involved together with its foreign partners," the company's representative explained.

In 2016, Latvijas Pasts intends to continue developing its main operations, paying special attention to the profitability and quality of its services and organizational improvements. There is also a plan to streamline the company's management this year.

Latvijas Pasts is fully owned by the Latvian state and its basic function is providing the universal postal service. The company is also involved in providing philately, transportation, express mail, financial, press and IT services, as well as retail trade.