SingPost flags Q1 operating loss for post & parcel business

SINGAPORE Post (SingPost) said it will deliver an operating loss for its post and parcel business for the quarter to June, as a result of the significant increase in costs as well as a lower delivery volume from a major e-commerce customer.

In an operational update filed to the bourse on Friday (Jul 15), the mainboard-listed postal service company noted that costs have jumped significantly — particularly that of fuel, labour and utilities.

Additionally, a major e-commerce customer cut its delivery volume as it now handles part of its own logistics. SingPost did not name the customer.

The international postal business, it stated, also came under pressure from further supply chain disruptions as well as a knock-on impact from the lockdowns in cities in China to stamp out the coronavirus.

“These have adversely impacted conveyance costs for our supply chains originating from China,” it said.

SingPost also said that despite the incremental air capacity improvement through Changi Airport, air conveyance costs were elevated as traffic in the quarter has yet to fully recover to pre-pandemic levels.

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The logistics and property units, however, were doing well.

SingPost shares closed flat at S$0.645 on Friday before this operational update was published.