SingPost to expand “purposefully”
Singapore Post Limited has announced its financial results for the year ended 31 March 2026, marking a year of strategic portfolio consolidation, and outlined its strategy for the Group.
For the financial year ended 31 March 2026, the Group recorded revenue of S$376.1 million, a decline of 23.1% YoY from S$489.1 million. Revenue was impacted by a 55.2% contraction in International revenue amidst a volatile global macroeconomic environment, as well as the continued decline in letter mail volumes.
Reflecting the softer international volumes, full-year operating profit fell 68.9% YoY to S$11.8 million, down from S$37.9 million.
Net profit was S$60.9 million for the full year, boosted by exceptional items and the derecognition of aged trade payables. Underlying Net Profit (“UNP”) which excludes exceptional items and derecognition of aged trade payables, stood at S$10.7 million for the year. Exceptional items of S$19.2 million comprised largely of a fair value gain on investment properties and a gain on the disposal of subsidiaries. The Group reviewed its process concerning the recognition and derecognition of liabilities (trade payables) with overseas postal administrators for international deliveries. Accordingly, S$38.1 million was derecognised during the financial year.
In the Logistics & Letters business, an 8.1% growth in domestic eCommerce volume and a postage revision effective 1 January 2026 helped mitigate the 13.5% structural decline in traditional domestic letter mail volumes. International eCommerce volume fell 57.9% YoY due to challenging global business conditions.
The Post Office Network successfully narrowed operating losses by 27.4% for the full year to S$10.7 million. This improvement was underpinned by a 20% reduction in operating expenses as the Group optimised its physical footprint.
The Property Assets segment remained a pillar of stability and success, with revenue rising 2.0% to S$80.7 million and operating profit reaching S$45.2 million. Overall property occupancy reached 99.4%, up from 98.2% the previous year, driven by positive rental reversions.
“Our results for the year reflect a consolidated baseline from which we will now strengthen and scale our business. Our strategy outlines our roadmap to navigate evolving market dynamics and drive long-term shareholder value,” said Mark Chong, CEO of SingPost. “By investing in technology and automation; focusing on asset enhancement in our Property portfolio and working towards financial sustainability in our business, we are fortifying the core of SingPost while expanding purposefully into new logistics services”.
SingPost has unveiled its strategy for sustainable growth.
SingPost Centre remains a cornerstone of the Group’s Property Assets business. The Group will retain SingPost Centre and leverage the government’s longer-term blueprint for the Paya Lebar region to reap potential value-enhancing opportunities for the benefit of shareholders. In the near term, the Group is evaluating plans to enhance SingPost Centre to improve efficiency and yield.
In the Logistics & Letters business, SingPost is transitioning to an improved operating model over the next few years to navigate shifts in demand. By integrating AI and automation, the Group aims to reduce the cost to serve by more than 10%. Simultaneously, the Group is leveraging its core competencies and last mile advantage to broaden opportunities in logistics such as warehousing and value-added solutions.
With respect to the Post Office Network, SingPost aims to drive value by optimising its footprint and operations, improving rental income from the post office properties and developing new revenue streams. The Group is on a firm path to achieve commercial sustainability for the Post Office Network.
The Group continues to actively monitor broader macroeconomic and geopolitical developments to ensure operational resilience and agility.
Proposed Final and Supplemental Dividends
The Board has recommended a final dividend of 0.06 cents per share for FY25/26. Additionally, a supplemental dividend of 0.41 cents per share has been proposed, derived from the net-of-tax derecognition of aged trade payables. This brings the total proposed dividends to 0.47 cents per share.
The proposed dividends are subject to the approval of shareholders at the 34th Annual General Meeting to be duly convened. The date payable and record date for the dividends will be announced at a later date.
