SingPost H2 net profit falls 81.5% to S$41.2 million as traditional business worsens
Board recommends a final dividend of S$0.0006 per ordinary share for the financial year ended Mar 31
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[SINGAPORE] Singapore Post ( SingPost ) on Thursday (May 14) recorded a net profit of S$41.2 million for its second half ended Mar 31, down 81.5 per cent from S$222.5 million in the year-ago period.
This translated to an earnings per share (EPS) of S$0.0183, versus an EPS of S$0.0989 in the previous corresponding period.
Revenue for the six months fell 18.2 per cent on the year to S$187.6 million from S$229.5 million.
The postal and logistics player said that the declines came “as the operating environment for the logistics and letters business, particularly in international e-commerce delivery, remained challenging”.
“While the post office network segment also showed a decline, property assets revenue remained relatively steady during the period,” it said.
The board is recommending a final dividend of S$0.0006 per ordinary share, amounting to S$1.4 million, for the financial year ended Mar 31. Including the interim dividend of S$0.0008 per share paid out in December, total dividends amount to S$0.0014 per share.
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Additionally, the board is recommending a supplemental dividend of S$0.0041 per ordinary share, amounting to S$9.3 million, for the financial year ended March.
For FY2025, SingPost’s revenue declined 23.1 per cent on the year to S$376.1 million from S$489.1 million.
The lower top line was attributed to a 55.2 per cent contraction in international revenue amid a volatile global macroeconomic environment, alongside the continued decline in letter mail volumes.
Reflecting softer international volumes, full-year operating profit fell 68.9 per cent year on year to S$11.8 million from S$37.9 million.
Net profit for FY2025 fell 75.2 per cent on the year to S$60.9 million from S$245.1 million.
In tandem, full-year EPS stood at S$0.027, down from S$0.1089 previously.
Mark Chong, CEO of SingPost, said that the full-year results “reflect a consolidated baseline” from which the group will strengthen and scale its business.
“Our strategy outlines our road map to navigate evolving market dynamics and drive long-term shareholder value,” he added.
“By investing in technology and automation, focusing on asset enhancement in our property portfolio and working towards financial sustainability in our business, we are fortifying the core of SingPost while expanding purposefully into new logistics services.”
Outlook
As part of its reset strategy, the group will retain its flagship SingPost Centre. It is bullish about the upside potential of the building, which will remain a cornerstone of its property assets business.
“The group will retain SingPost Centre and leverage the government’s longer-term blueprint for the Paya Lebar region to reap potential value-enhancing opportunities for the benefit of shareholders,” it said.
In the near term, plans to enhance SingPost Centre for improved efficiency and yield are being evaluated, the company added.
The counter ended Wednesday 1.3 per cent or S$0.005 lower at S$0.375.
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