Singapore Post Limited (SingPost) reported its results for the first half ending 30 September 2024.
Group revenue grew 20% year-on-year to S$992 million, up from S$827 million, while net profit surged 65.5% to S$22 million.
Underlying net profit rose to S$25 million, compared to S$13 million in the same period last year, driven by higher revenues.
Vincent Phang, Group CEO, SingPost says: “Our first-half results demonstrate the resilience across our businesses, despite the challenging market conditions. We are focused on executing our strategic initiatives to maximize shareholder value.”
Singapore business segment
Revenue for the Singapore postal and logistics business rose 12.4% year-on-year to S$129.6 million, up from S$115.3 million.
This growth was primarily driven by increased revenue from the delivery business following the postage rate hike in October 2023, which offset the ongoing decline in letter mail volumes.
Despite stronger delivery revenue, the business remains challenged by the unprofitability of the post office network and one-off costs for technology upgrades and system enhancements in the first half.
The segment posted an operating loss of S$0.9 million, a significant improvement from the S$14.7 million loss recorded previously.
The Group is working with authorities to develop a sustainable operating model for postal services, focusing on optimizing consumer touchpoints and transitioning select services to alternative locations.
Property leasing
Property revenue increased 13.2% year-on-year to S$43 million, up from S$38 million. Operating profit for the property segment also improved, rising 11.7% to S$23 million from S$21 million.
This growth was driven by higher rental income from SingPost Centre, which achieved an occupancy rate of 98.2% as of 30 September 2024, up from 96.2% in March 2024.
Australia drives growth amid challenges
In August, SingPost and Wish operator ContextLogic launched a partnership delivering faster parcel deliveries for Australian customers.
Parcels now arrive at doorsteps in under two weeks. This is a significant improvement from the previous three-week wait.
Additionally, customers can track their packages in real-time, from the warehouse to the final destination, enhancing the overall delivery experience.
The Australian segment of the business proved resilient. Here’s how it fared:
- Revenue surge: Australia business revenue grew 44.1% year-on-year, reaching S$574.9 million, up from S$398.9 million in the first half.
- Profit boost: Operating profit climbed 30.2% to S$30.4 million, compared to S$23.3 million, driven by the integration of Border Express after its March 2024 acquisition.
- Steady performance: Despite economic headwinds and lower B2B and B2C volumes, the Australia business showed resilience under tough market conditions.
- Pipeline strength: The 4PL business pipeline remained robust, gaining new customers in the first half.
SingPost’s international business segment
Cross-border delivery and warehousing services and freight forwarding operations. Here’s a quick summary of how the company’s international segment performed:
Cross-border
- Revenue fell 26.8% year-on-year to S$117.9 million, down from S$161.1 million.
- Operating profit improved slightly to S$4.3 million, up from S$3.0 million.
- Focus remains on boosting operational efficiency to sustain margins and profitability in a tough market.
Freight forwarding operations
- Revenue grew 9.7% year-on-year to S$148.7 million, driven by higher sea freight rates.
- Operating profit dropped 29.2% to S$8.4 million, down from S$11.9 million, as rising sea freight costs squeezed margins.
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Photo Credit: SingPost (Facebook)
About the author
Sharl is a qualified journalist. He has over 10 years’ experience in the media industry, including positions as an editor of a magazine and Business Editor of a daily newspaper. Sharl also has experience in logistics specifically operations, where he worked with global food aid organisations distributing food into Africa. Sharl enjoys writing business stories and human interest pieces.
