SingPost H1 profit down 12.8% at S$19.7 million amid divestments, tough e-commerce business
It declares interim dividend of S$0.0008 per share
[SINGAPORE] Singapore Post (SingPost) posted a 12.8 per cent drop in net profit to S$19.7 million for its first half-year ended Sep 30, from S$22.6 million in the previous corresponding period.
This was mainly due to the lack of contributions from the divested Australia business, which had offset the exceptional gains from other divestments in the half year, the postal service provider said on Monday (Nov 10).
Earnings per share from the continuing and discontinued operations, excluding distributions to holders of perpetual securities, stood at S$0.0063 for the period, down from S$0.0076 in the previous year.
The discontinued operations refer to the Australian logistics business under SingPost Australia Investments and its subsidiaries, as well as the freight-forwarding business of Famous Holdings, Rotterdam Harbour Holding and subsidiaries of Quantium Solutions Group.
Revenue for H1 from the continuing operations of logistics and letters, the post office network and property assets fell 27.4 per cent to S$188.4 million, from S$259.6 million a year earlier.
This was due to a “challenging operating environment” for the logistics business, particularly in cross-border e-commerce delivery volumes, the filing read. The revenue including the continued and discontinued operations was S$992.4 million a year earlier.
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The group’s core logistics and letters segment reflected this decline, posting revenue of S$153.5 million, down 33.1 per cent year on year from S$229.4 million previously.
The segment swung to an operating loss of S$4.4 million, from an operating profit of S$13.7 million in the prior year. SingPost attributed this to a 63 per cent year-on-year decline in cross-border e-commerce delivery volumes, coupled with lower domestic e-commerce volume and the structural decline in letter mail.
Revenue from its post office network fell 13.9 per cent to S$5.7 million, though its operating loss narrowed slightly to S$5.8 million, due to the cessation of several post office operations.
The property assets segment was a bright spot, with revenue rising 3.4 per cent to S$40.6 million. This was driven by higher rental income from SingPost Centre, where the overall occupancy rate stood at 99.2 per cent, the statement read.
The results come as SingPost undertakes a significant streamlining of its portfolio.
In a separate filing on Monday, the group detailed its recent divestments, including the sale of its entire freight-forwarding business, Famous Holdings and Rotterdam Harbour Holding, for an aggregate cash consideration of about S$177.9 million.
The sale of Famous Holdings to DP World Logistics was completed on Jul 22, 2025, while the Rotterdam Harbour Holding disposal was completed on Jul 23, 2025.
SingPost also completed the unwinding of its cross-holding with Alibaba Investment on Jul 24, 2025, which resulted in its unit Quantium Solutions International becoming a wholly owned subsidiary.
Other disposals during the period included its 33 per cent stake in Morning Express & Logistics for HK$7.5 million (S$1.3 million), and the divestment of several other Quantium Solutions subsidiaries in Hong Kong, Malaysia and Thailand.
These disposals contributed to a decline in the group’s total assets, which stood at S$2.1 billion as at Sep 30, down from S$2.4 billion as at Mar 31 this year.
An interim dividend of S$0.0008 per share was declared for the half year, down from S$0.0034 per share the year before. The dividend will be paid on Dec 5 this year, after books closure on Nov 25.
Mark Chong, who assumed the role of chief executive officer of SingPost on Nov 1, said: “Our H1 FY2025/26 performance reflects the full impact of the streamlining of our business. This team has delivered a positive start to the first half, despite the persistent weakness in the global logistics and e-commerce sector.”
He added: “We will continue to invest in our infrastructure to further enhance our service levels, while managing our cost base.”
Shares of SingPost last traded at S$0.42 on Friday, up S$0.01 or 2.4 per cent.
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