International postage costs drag SingPost's domestic e-commerce gains

E-commerce-related activities accounted for 55% of total revenue.

Singapore Post Limited reported positive results during the first half of 2021, with net profits increasing by 19% to $37.4m in the first half of FY2022.

Postal revenue and operating profit fell to 17.5% and 52.6% year-on-year (YoY) respectively, dragged down by the international postal segment (-26.6% YoY). However, the robust growth from domestic e-commerce revenue (+32% YoY) offset the decline.

Logistics revenue and operating profit went up to 29.6% and 184.4% YoY, respectively, as freight forwarding revenue skyrocketed 63.3% YoY because of congested global supply chains.

In line with the current positive performance, UOB Kay Hian forecasts a 1% to 5% increase in earnings for FY2022 to FY2023 due to larger freight management holdings earning estimates.