SingPost operating profit drop 38% YoY to $26m in Q3

Its revenue for Q3 rose 1% QoQ to $351m.

Singapore Post (SingPost) recorded an operating profit of $26m for Q3 ended 31 December, representing a 38% YoY decline but a 41% increase from the previous quarter, the company announced.

Its revenue for Q3 rose 1% QoQ to $351m, driven by growth in the logistics segment as couriers please and the group’s freight forwarding entity, Famous Holdings, recorded revenue growth on the back of higher volumes.

Moreover, revenue from domestic post and parcel e-commerce was at $20m, going up on both a YoY and QoQ basis, as SingPost handled around 10.3 million e-commerce packages.

The group is also expecting the volumes of letters and printed papers in Singapore to continue declining due to electronic substitution.

International post and parcel business is also impacted by the severe disruption to international air freight out of Changi Airport, resulting in higher conveyance costs that eroded margins.

“As the COVID-19 pandemic continues to create disruptions across the global economy, the group is actively adapting measures to navigate the current environment, including seeking new e-commerce growth opportunities in Singapore, Australia and the Asia-Pacific region,” SingPost said.