SingPost posts 42.1% profit plunge in H1 FY2020

Rising international conveyance costs triggered the fall.

Singapore Post (SingPost) has registered a 9.6% jump in H1 FY2020 revenue to $707.8m due to a robust e-commerce growth in post and parcel, but its net profit nosedived 42.1% to $30.9m, the company revealed in a statement..

The fall in net profit was led by pandemic disruptions which triggered hikes in international conveyance costs and labour-related expenses. On the other hand, e-commerce-related revenue grew to 32% of total domestic post and parcel, up from 18% in the same period last year.

Moreover, for the post and parcel segment, revenue rose 5.2% for the half year.

Cross-border e-commerce volumes in the international post and parcel segment remained resilient despite a 96% drop in passenger fleet three movement in Changi Airport. In addition, the long delays and limited cargo space led to higher conveyance costs that eroded the segment’s margins.

In the logistics segment, revenue rose 20.3% for the half year. CouriersPlease, Quantium Solutions and SP e-commerce experienced strong growth due to increased adoption of e-commerce activities in AsiaPacific. In particular, CouriersPlease saw solid volume growth in Australia, with revenue rising 48% for the half-year.

An interim dividend of $0.5 cent per share was declared.