SingPost Q1 operating profit tumbles 60% to S$3.4 million amid falling revenue, margin squeeze
Revenue has fallen for both its domestic and international delivery sectors
[SINGAPORE] The group operating profit for Singapore Post (SingPost) in the first quarter ended Jun 30 came in at S$3.4 million, a 60 per cent year-on-year decline from S$8.4 million.
The decrease was due to increased market pressure and competition, said SingPost in a bourse filing on Friday (Aug 22).
Group revenue fell 23.8 per cent to S$162.3 million, from S$213 million in the year-ago period. The decline was largely attributed to a “significant reduction in international deliveries”.
In March, SingPost completed the sale of its Australian logistics business, Freight Management Holdings (FMH), for an enterprise value of A$1.02 billion (S$867 million at the time). The divestment of FMH, which was a major revenue contributor, had raised some questions about the group’s long-term strategic direction.
Also contributing to Q1’s poorer showing was a fall in operating profit margin to 2.1 per cent. Just last month, S&P Global Ratings downgraded SingPost’s long-term issuer credit rating to “BBB-” from “BBB”, citing its high fixed operating costs.
Group operating expenses declined 22.7 per cent from S$204.6 million to S$158.2 million, following the divestment of its Australia business.
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The company has yet to appoint a new chief executive officer after firing Vincent Phang last year over the mishandling of a whistle-blower complaint.
By segments
Lower delivery volumes meant that the domestic and international delivery business recorded lower revenue. The volume of letter mail also contracted due to continuing electronic substitution. Domestic and international e-commerce volume shrank as well.
SingPost and Alibaba agreed to unwind their respective minority cross-shareholdings in Quantium Solutions International (QSI) in April, resulting in the sale of QSI’s 17.6 per cent stake in Shenzhen 4PX to Cainiao.
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The group then entered into a sale-and-purchase agreement for the divestment of QSI to Morning Global in five Asia-Pacific countries and territories.
Property leasing revenue, comprising mainly rental income from SingPost Centre, was stable, said the group. Overall occupancy rate at the property was 97.8 per cent as at Jun 30, 2025, up from 96 per cent previously.
The company added that the property assets business (including SingPost Centre) is also expected to remain stable.
Earlier this month, SingPost divested 10 Housing & Development Board shophouses for S$55.5 million, after putting them up for sale and leaseback. The group said current post office services will be maintained, with the transaction still subject to the necessary approvals before completion.
The freight-forwarding business posted lower revenue amid volatility in the sea freight market. Last month, the group divested its entire freight-forwarding business, Famous Holdings, for S$177.9 million.
Borrowings were flat at S$349.6 million, and total equity stood at S$1.6 billion as at Jun 30, down 0.3 per cent.
Outlook
SingPost said it aims to become a “leaner and more focused” business, and that the recent divestments are in line with that plan.
The divestments have “strengthened its balance sheet, reduced debt and enhanced its flexibility to respond to market opportunities”, it added.
The group will now concentrate its resources on its postal and logistics business, as well as property. This will better position it to “drive operational efficiency”.
SingPost will be focusing on building market share, maximising asset utilisation and enhancing its digital capability in the domestic delivery business, it said. The group added that it will continue to take an active approach to prioritise yield enhancement and operational efficiency of all assets.
Shares of SingPost closed Friday flat at S$0.50.
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