SingPost net profits jump 26.9%

Singapore Post (SingPost) has reported that its net profits for the first half of 2015 were S$100m, up 26.9% on last year. Revenue grew by 20.1% to S$517.8m, and the underlying net profit was up 1.4%.

E-commerce related revenue is now 29% of the group’s revenue.

According to SingPost’s official statement on the results: “Revenue from Logistics operations increased by 43.5% to S$296.1m on the back of growing contributions from SingPost’s e-commerce logistics activities and the inclusion of new subsidiaries. Operating profit was up 45.3%. This growth reflects SingPost’s increasing share of the fast expanding e-commerce market and demand for e-commerce logistics.”

Mail revenue declined 2% to S$241.7m as revenue from hybrid mail ceased with the divestment of Novation Solutions and DataPost. Excluding the impact of the divestments, Mail revenue was flat compared with the same period last year. Operating profit rose 6.7% as the Group continued to focus on productivity and efficiency of its mail operations, particularly with investments in mail infrastructure.

Commenting on the results, Dr Wolfgang Baier, SingPost’s Group Chief Executive Officer said: “We emerge with a more stable and stronger foundation to our business since the start of our accelerated transformation. It is now showing in the numbers. Group revenue and total profit grew about 20% and 27% respectively. eCommerce logistics continue to deliver strong revenue growth and eCommerce related revenue is now 29% of Group revenue.”