SingPost tops S$1bn in annual revenues
Singapore Post (SingPost) has announced that its annual revenues have topped S$1bn for the first time. In its statement about its results for the full year ended 31 March, SingPost also reported that its net profit hit a record high of S$248.9m.
The company’s revenue grew 27.7% in the fourth quarter (Q4) and 25.2% in the full year, driven by e-commerce-related activities and the inclusion of new subsidiaries.
Net profit for Q4 was almost triple what it was in 2014 – jumping from S$35.6m to S$105.4m. For the full year, it increased 57.9% from S$157.6m to S$248.9m. These figures were boosted by one-off divestment gains, however. Excluding the one-off items, underlying net profit fell 20.1% for Q4, and was down 4.1% for the full year. SingPost said this was “due largely to the reduction in rental income as the Singapore Post Centre (SPC) is being redeveloped, and higher finance expenses”.
E-commerce activities accounted for 35.8% of the full year revenue.
In the logistics sector, operating profit increased 132.9% in Q4 and 75% for the full year. Logistic revenue for the full year was up 34.7% at S$626m.
In the Mail segment, revenue increased 3.3% in Q4 and SingPost emphasised this had been achieved despite the “cessation of revenues from subsidiaries which were divested in the first half of the year”.
SingPost added: “Excluding the impact of the divestments, Mail revenue would have grown by 13.4% in Q4 and 6.7% for the full year. This was largely driven by higher International mail revenue as a result of increased cross-border eCommerce-related deliveries.”
Commenting on the results, Mervyn Lim, Deputy Group Chief Executive Officer (Corporate Services) and Group Chief Financial Officer, said: “SingPost embarked on a transformation journey more than ten years ago to future-proof our business and we are seeing results. SingPost’s solid postal foundation paved the way for the company to pioneer eCommerce logistics in this part of the world and we successfully pivoted into the US with the completion of the Trade Global and Jagged Peak acquisitions in November 2015 and March 2016 respectively.”
