SingPost reports fragile fiscal year with 47.7% net profit decline

COVID-19 hit the postal service's operations hard.

The Lion City's postal service, Singapore Post Limited (SingPost) reported a 47.7% decline in net profit, at $47.6m for the fiscal year ending in March 2021.

Despite a 6.9% increase in revenue to 1.4 billion driven by eCommerce sales, this was almost offset by its operating expenses which increased by 13.6% to $1.3b.

International post and parcel deliveries, in particular, have been slapped by several constraints, including the air capacity in and out of Changi Airport. This has resulted in significantly higher conveyance costs and a substantial reductions in margins.

Domestic post and parcel deliveries also suffered higher costs as a result of health and safety arrangements for COVID-19, including temporary housing for Malaysian staff members in Singapore.

"It’s been more than a year since COVID-19 struck the world, and the operating environment for businesses across all industries has changed as a result. SingPost has not been spared from the huge challenges the pandemic presentedin the last year. Despite this, we delivered a resilient performance and remained profitable. More importantly, we have positioned SingPost for the rebound which will come in time," said SingPost CEO Paul Coutts.

The company said its performance in certain business segments will continue to be affected by factors beyond its control, including border closures and international conveyance costs out of Changi Airport.

Whilst the recovery of the international post and parcel business is dependent on reopening of the Singapore air hub, SingPosts will continue to explore various means to improve the performance of this segment.