SingPost Q1 net profit falls 23%

Singapore Post (SingPost) has announced a net profit of S$49.4m for the first quarter (Q1) of FY16/17. This was down 23% on Q1 2015, but SingPost said the drop was “due mainly to one-off divestment gains in the previous year”.

Revenue was up by more than 30% to S$333.4 “buoyed by continued expansion of cross-border e-commerce-related activities, and the inclusion of contributions from new subsidiaries”.

Indeed, e-commerce-related revenues from across the Postal, Logistics and eCommerce segments more than doubled from S$73.1m to S$164.1m. They now make up 49.3% of SingPost’s group revenue, up from 28.7% last year.

International mail revenue was up 30.3% to S$65.5m, while domestic mail revenue declined 4.3% to S$64m due to lower volumes.

Logistics revenue rose 11.9% to S$156.7m, with steady organic growth at Quantium Solutions and CouriersPlease, as well as the inclusion of a new subsidiary under Famous Holdings.

Commenting on the results, Mervyn Lim, Covering Group Chief Executive Officer, said: “We are investing in our business transformation and that will take time to contribute materially to earnings. We are focused on executing our strategy to create value from our acquisitions and build an integrated global eCommerce logistics ecosystem. SingPost’s strategy to protect the postal core and grow its eCommerce logistics network remains on track.”