SingPost's Q1 net profit slides 13.6%

SINGAPORE Post (SingPost) reported on Friday that its net profit for the fiscal first quarter ended June 30, 2017 slipped 13.6 per cent to about S$31 million, from S$35.9 million a year ago.

Revenue, however, was up 6.2 per cent to S$354.1 million due to growth in the postal and logistics segments.

Underlying net profit, or net profit before exceptional items, declined 24.7 per cent to S$26.,9 million, from S$35.8 million a year ago. This was due mainly to lower domestic mail volumes, costs from planned investments, increased competition in the logistics segment, and associates that are investing for growth.

Free cash flow improved to S$32.0 million, from S$13.7 million due to lower capital expenditure with the completion of the regional eCommerce logistics hub last year.

On June 30, 2017, SingPost's cash and cash equivalents stood at S$364.4 million, down from S$366.6 million on March 31, 2017, mainly because of a net repayment of bank loans. The group recorded a net cash position of S$32.7 million, improving from S$2.6 million on March 31, 2017.

The board has declared an interim dividend of 0.5 cent per share, to be paid on August 31, 2017.