SingPost reports rise in profits and revenues
Buoyed up by a continuing expansion in e-commerce and logistics activities, Singapore Post (SingPost) saw increases in both revenues and profits for the first nine months of FY 2015/16. Revenues were up 24.3% to S$834m, while operating profit increased by 18.5% to S$176.8m. Net profit was S$143.5m, an increase of 17.6%.
E-commerce-related revenues rose by 53% and made up 33.4% of Group revenue, up from 27.1% the previous year.
SingPost said that its transformation from “a traditional domestic mail business” into a global e-commerce player is also showing up in the geographical makeup of its revenue streams. Overseas revenues increased to 41.9% of Group revenue in the first nine months of FY2015/16, compared to 31% in the corresponding period last year.
SingPost reported that mail revenue was stable at S$372.3m and operating profit rose by 5.2%, “despite the cessation of revenue from hybrid mail with the divestment of Novation Solutions in the first quarter and DataPost in the second quarter”.
Commenting on the results, Mervyn Lim, Deputy Group Chief Executive Officer (Corporate Services) and Group Chief Financial Officer, said: “We are realising the potential of our transformation into the global eCommerce logistics space with more scale and synergies from integration. Our transformation is showing in our financial results, which reflect how SingPost is on a new growth trajectory.
“The investments we made in the last few years are driving up both top and bottom line growth, with Group revenue up 24% and net profit, 18%. With the integration of these acquisitions into existing operations, we can expect further synergies and expansion of our eCommerce business as we provide retail brands with easy one-stop access to eCommerce markets in the US, Europe, China and the rest of the Asia Pacific region.”
Marcelo Wesseler, Chief Executive Officer of SP Commerce, added: “Our transformation into a global end-to-end eCommerce logistics enabler is taking shape.
“Last month, we launched SP Commerce, a global omni-channel commerce and fulfilment platform that integrates leading US-based eCommerce providers TradeGlobal Holdings, which we acquired recently, and Jagged Peak.
“SingPost now processes US$3bn of merchandise every year. We do this through more than 50 distribution centres across over 18 countries that include major eCommerce markets in the US, Europe, China and the rest of the Asia Pacific. We provide end-to-end eCommerce logistics solutions to more than 100 mono-brand clients.”