Royal Mail has said full-year pre-tax profits slumped 33% to £267 million as it took a hit from transformation costs.
The postal delivery company said the fall reflects one-off items, such as pension charges, that distorted its balance sheet.
However, revenue rose 1% to £9.2 billion as chief executive Moya Greene hailed a "resilient performance".
Parcel deliveries, where competition from the likes of FedEx and UPS have eaten into Royal Mail's market share, rose 3%.
Under Ms Greene, the company has embarked on an ambitious cost-cutting drive and the company confirmed that it reduced its headcount by 3,500 over the year.
Ms Greene added: "We are introducing new and improved products and services and responding quickly to changing customer needs.
"These measures, alongside our emphasis on customer focus and delivering a value for money service, have helped us to maintain our pre-eminent position in UK letters and parcels and driven growth."