The Postman's profit predicted to hit around $35m

Expenses are feared to be high.

According to OCBC, Singapore Post (SingPost) will be announcing its 1QFY14 results after market close on 2 Aug 2013. Analysts expect net profit to be around S$35m.

Expenses are likely to remain elevated due to inflationary cost increases, additional headcount from new subsidiaries, growth in volume-related expenses and other administrative costs.

Here's more from OCBC:

The group is also pressing on in its investments to enhance service quality and productivity. In particular, SingPost will invest more than S$100m in infrastructure (e.g. better sorting machines), services and enhancements over the next few years. 

The group has been focused on growing its non-mail businesses with the help of acquisitions. For instance, General Storage was acquired in Feb this year to grow SingPost’s self-storage business in the region. A 62.5% stake in Famous Holdings was also acquired early this year, with the aim that its freight-forwarding capabilities will complement SingPost’s e-commerce capabilities in the region.

We expect the group to continue to grow inorganically as it will be the fastest way to diversify from the mail business.