Business
Georgian Post Swings to GEL 8.6M Loss in 2025 as Postal Revenue Slides
July 26, 2026
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State-owned Georgian Post plunged to a net loss of GEL 8.6 million in 2025, wiping out the modest GEL 864,000 profit it recorded a year earlier, as its core mail business shrank and payroll costs climbed. The reversal, disclosed in the company's audited accounts, prompted Prime Minister Irakli Kobakhidze to pledge a return to profitability in 2026 on the back of a workforce reduction and a broader efficiency drive.
The swing to red marks one of the sharper deteriorations among Georgia's state enterprises this year and lands at a moment when the government is under pressure to demonstrate discipline across its portfolio of public companies. Postal operators across the region have struggled to offset the long decline of traditional letter mail with e-commerce parcel volumes, and Georgian Post is no exception: the digital shift has eroded its most reliable revenue line faster than newer services can compensate.
Total revenue fell 3.5 percent to GEL 82.3 million, with income from core postal services dropping to GEL 52.3 million from GEL 55.8 million in 2024. Delivery and parcel revenue reached GEL 29.7 million, but that was not enough to arrest the slide. On the cost side, personnel expenses rose to GEL 39.7 million from GEL 35.7 million, meaning wages alone now consume nearly half of all revenue. Accumulated losses climbed to GEL 20.6 million against total assets of GEL 92.7 million at year-end, according to the figures reported by BM.ge.
Adding to the caution, auditors at Baker Tilly Georgia issued a qualified opinion on the accounts. They cited insufficient evidence regarding certain of the company's obligations and warned that its future operations depend, to some extent, on continued state support, a red flag that signals the enterprise is not yet standing on its own commercially.
For investors and creditors watching Georgia's public sector, the results are a reminder that the country's state enterprises carry contingent risks even as headline macroeconomic growth remains strong. A qualified audit and explicit reliance on budget backing raise governance questions that resonate beyond a single postal operator, particularly as institutions such as the IMF scrutinize fiscal transparency and the health of state-owned entities during their regular assessments of the economy. Weak returns from public companies can quietly add to the state's contingent liabilities even when the central budget looks sound.
Kobakhidze framed the 2025 result as a turning point rather than a warning, forecasting that Georgian Post would return to profit in 2026. The company has already cut 102 positions and says further cost reductions and efficiency measures are underway. Whether those steps are enough to reverse a structural decline in letter mail, or merely slow it, will become clear over the coming year. For now, the operator's path back to black depends heavily on containing payroll, expanding parcel and logistics volumes, and weaning itself off the state support its own auditors have flagged as a lingering vulnerability.
