SingPost sinks into the red with S$9.9m loss in H1 on exceptional charge

SINGAPORE Post (SingPost) sank into the red in its latest half-year results reported on Thursday (Nov 3), after taking into account an exceptional item related to the acquisition of an Australian unit. The charge might arise in future depending on whether SingPost’s stake rises, and the value of that unit.

SingPost’s profitability took a turn for the worse in the half year to September as it posted a net loss of S$9.9 million, compared to a net profit of S$35 million for the corresponding period a year ago. The loss was a result of a fair value charge of S$21 million arising from the higher put option redemption liability on Freight Management Holdings (FMH). Stripping it out, SingPost reported underlying earnings of S$13.2 million.

FMH is a 51 per cent-owned subsidiary of SingPost, operating a fourth-party logistics service business that provides integrated supply chain and distribution solutions in Australia.