SingPost profits up 10.3% to $27.73m in Q2

Higher International Post & Parcel revenue boosted its growth.

Singapore Post's (SingPost) net profit rose 10.3% to $27.73m in Q2 FY 19-20, according to a media release. Its revenue grew 2% to $324.39m over the same period.

For the first half of the financial year, its profit jumped 21.8% to $53.41m, whilst revenue climbed 1% to $645.65m.

The growth in revenue was attributed to a higher International post and parcel revenue from cross-border eCommerce deliveries. Revenue in the Post and Parcel segment rose 5.3% for Q2 and 2.9% for H1.

However, this was partially offset by a decline in Domestic post and parcel revenue from a reduced business and advertising letter volumes as well as a drop in freight forwarding revenue.

However, excluding the impact of exceptional items, underlying net profit slipped 4.6% to $26.8m in Q2 from a drop in earnings from the Post and Parcel segment and freight forwarding business. Underlying net profit for H1 dipped 0.7% to $52.4m.

The Logistics segment’s revenue declined 2.5%in Q2 and 2.4% in H1, mainly from the depreciation of the Australian dollar against the Singapore dollar for its courier delivery service CouriersPlease. Losses on operating activities for the segment widened to $900,000 for
Q2 and $2.6m for H1.

Under the Property segment, profit on operating activities for Q2 rose 3.1% to $13.8m and held stable in H1 at $26.6m. Revenue remained largely stable at S$30.3m in Q2 and $60.2m in H1, with SingPost Centre retail mall and office remaining at close to full occupancy.