SingPost reports fiscal 1H net profit grew 13 percent

Singapore Post SAM machines; taken at SingPost Centre in March 2018.

Singapore Post (SingPost) reported Wednesday its fiscal first half net profit grew 13.3 percent on-year to S$35.05 million amid growth in the domestic post and parcel, logistics and property businesses.

Revenue for the April-to-September period grew 3.3 percent on-year to S$731.39 million, the postal and logistics operator said in a filing to SGX.

Group operating profit grew 28.4 percent on-year to S$51.09 million on contributions from logistics and property, partly offset by the Covid-related disruptions impacting the profitability of the international post and parcel business, the filing said.

Vincent Phang, group CEO, said performance improved this year despite the continued Covid-related challenges.

“This is in part due to the acceleration of e-commerce adoption as consumer habits have changed during the pandemic,” Phang said in the statement.

“We are accelerating our growth plans for our e-commerce logistics business, as demonstrated by our reaching an agreement to bring forward the plan to increase our shareholding in Freight Management Holdings in Australia from 28 percent to 51 percent,” he added.

For the fiscal first half, the domestic post and parcel business saw e-commerce delivery revenue grow 32 percent on-year, with e-commerce revenue accounting for 40 percent of the domestic business, up from 32 percent in the year-ago period, the filing said.

SingPost said the international post and parcel business was resilient despite constraints from flight capacity, with revenue falling 26.6 percent on-year in the six-month period, largely on the previous year’s high base due to a surge in shipment volumes from China prior to early 2020’s border closure.

The overall post and parcel business posted fiscal first half operating profit dropped to S$11.3 million from S$23.9 million in the year-ago period, mainly on the absence of the year-ago government grants, SingPost said, adding excluding the grants, revenue was relatively stable at S$325.5 million, compared with S$394.8 million in the year-ago period.

The logistics segment posted fiscal first half revenue increased 29.6 percent on-year to S$379.5 million, while operating profit increased to S$16.2 million from S$5.7 million in the year-ago period, as Australian units saw robust growth.

The property segment posted revenue for the six-month period improved 7.9 percent on-year to S$59.8 million, mainly on lower rental rebates to tenants and higher car-park receipts, which pushed operating profit up 13.5 percent on-year to S$26.6 million.

“In spite of a soft leasing market due to the challenging economic environment, the SingPost Centre retail mall and office rentals remained at close to full occupancy,” at end-September, the company said.

SingPost declared a dividend of 0.5 Singapore cent, unchanged on-year.

Read more details of SingPost’s segment performance in its SGX filing.