SingPost's international post and parcel business to gradually recover

Easing of border restrictions helped with the recovery.

The international post and parcel (IPP) business of SingPost could gradually recover this year following the increase in flight volumes, which includes narrow-body aircraft to tourist spots, according to CGS CIMB.

In its report on SingPost, CGS CIMB said the post and parcel already showed signs of recovery, as its segment operating profit went up by 23.2% year-on-year in the second half (H2) of 2022, on the back of easing of border restrictions and flights of Changi Airport increases.

But CGS CIMB warned that strict lockdowns in China could also result in additional cost pressures and service disruptions to certain routes.

Meanwhile, the logistics segment reported an operating profit of $28.1m YoY in H2 2022 on the back of a four-month contribution from newly consolidated financials of Freight Management Holdings and growth in freight forwarding and delivery volumes.