SingPost profit up 11.8% to $11.9m

The group is seeking to raise its postage rates to better cover cost of operations.

Singapore Post has reported an operating profit of $11.9m in the first quarter of its FY2023/2024 financial year, 11.8% higher than a year ago.

SingPost credited the performance to its Australia business and the continuing recovery in its cross-border e-commerce logistics business. This helped mitigate declines in its freight-forwarding and domestic postal businesses.

The group’s overall revenue for the period was $404.1m, which is 15% lower than last year. Operating expenses improved to S$391.9m, 16% lower than the S$466.3m last year. SingPost attributed this to lower volume-related expenses such as conveyance costs, as well as prudent cost management.

“The structural decline in postal services continued to impact revenue and profitability,” Singpost stated in its latest business update report. 

The group is currently seeking approval from the Infocomm Media Development Authority (IMDA) to increase postage rates to reflect the true cost of operations.

SingPost’s Australia business saw revenue and operating profit rise by 6.6% and 34.4% respectively. New customer acquisitions, and volume growth in its 4PL and last-mile delivery businesses, helped push up profits.

The group’s overall revenue for the period was $404.1m, which is 15% lower than last year.

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Notably, revenue from its Famous Holdings was significantly lower, SingPost said, due to reduced sea freight rates and volumes. Operating profit from Famous Holdings was also lower, although SingPost stated that “margins were sustained.”

SingPost’s international post & parcel (IPP) business posted lower numbers so far in 2023 compared to a year ago, although revenue and profit grew compared to the previous quarter.

Its domestic post & parcel business saw revenue fall by 5.3% compared to a year ago, as volumes of letters & printed papers and e-commerce deliveries continued to decline. 

Volumes from new customer acquisitions helped to mitigate the normalisation of eCommerce volumes in the market post pandemic, SingPost said.