SingPost net profits up 37%
Singapore Post (SingPost) has reported that its revenues for the third quarter (Q3) ended 31 December were up 11.7% to S$412.8m, while net profit rose 37.2% to S$43.0m.
In a statement issued today (2 February), Paul Coutts, Group Chief Executive Officer, said: “Good execution across the Group saw us capture the benefits of a festive peak season in which eCommerce volumes made new records globally. During the quarter, revenue from eCommerce-related activities rose 26.4% to S$247.8m, hitting 60.0% of total revenue. We will move ahead with our strategy to become a leading postal and eCommerce logistics company to realise the full potential of our transformation.”
Postal revenue was up by 15.8% and operating profit rose 4.0%. International mail revenue rose 37.7% to cross S$100 million, driven by higher cross-border eCommerce deliveries, including those for the Alibaba Group’s Double-Eleven event in November 2017.
Logistics revenue grew 1.5%. SP Parcels and CouriersPlease increased last mile delivery volumes in Singapore and Australia respectively, while Famous Holdings saw higher freight forwarding volumes.
Operating profit declined 44.8%, which SingPost said was “due to higher line haul and handling costs, as well as lower contribution from Quantium Solutions, which continued to face competitive pressures in Hong Kong, even as utilisation rose at the Regional eCommerce Logistics Hub in Singapore”.
eCommerce revenue rose 19.7% in the quarter and more than halved its operating loss. Jagged Peak recorded a 43.9% increase in revenue, reflecting the US festive peak retail season.