Singapore Post (SingPost) reported Friday its group operating profit for the fiscal third quarter grew 46 percent on-year to S$38 million, partly on the consolidation of Freight Management Holdings (FMH) after it became a subsidiary at end-November.
Group revenue for the three months ended 31 December increased 24 percent on-year to S$437 million, the postal service and logistics operator said in a filing to SGX.
“Despite the absence of S$6.1 million support from the Jobs Support Scheme that we benefitted from last year, group operating profit rose 46 percent mainly due to higher profit from Famous Holdings, Domestic Post and Parcel (DPP) and from the consolidation of FMH,” SingPost said in the statement.
FMH is a 4PL, or fourth-party logistics, service company in Australia; 4PL is a model where manufacturers outsource all of its supply chain and logistics oversight to an external provider.
SingPost said the acquisition of FMH was in line with its strategy to scale up in Australia and to become a leading e-commerce logistics services provider.
“In addition, International Post and Parcel (IPP) profit improved despite lower revenue, and there was higher profit from the property segment mainly due to lower rental rebates given to tenants,” the company said.
DPP e-commerce logistics volume rose 50 percent on-year in the quarter on higher e-commerce activity and one-off nationwide distribution projects, such as Covid ART test kits and mouth gargles, SingPost said.
In its outlook, SingPost said it expected IPP to gradually improve as flight capacity out of Changi Airport recovers more significantly.