SingPost profit for the first half year lept 26.9 per cent on the back of the company’s eCommerce business, which now accounts for 29 per cent of its revenue.
Singapore Post says continuing expansion in eCommerce and logistics activities, and contributions from new subsidiaries, raised SingPost’s revenue in the first half by 20.1 per cent to S$517.8 million. Operating profit was 24.4 per cent higher at $122.2 million due to steady operating performance in mail and logistics, combined with one-off gains from divestments.
Net profit was $100.0 million, an increase of 26.9 per cent. Underlying net profit rose 1.4 per cent to $77.8 million.
Revenue from logistics operations increased by 43.5 per cent to $296.1 million on the back of growing contributions from SingPost’s eCommerce logistics activities and the inclusion of new subsidiaries. Operating profit was up 45.3 per cent.
“This growth reflects SingPost’s increasing share of the fast expanding eCommerce market and demand for eCommerce logistics,” the company said in a statement.
Mail revenue declined two per cent to $241.7 million as revenue from hybrid mail ceased with the divestment of Novation Solutions and DataPost. Operating profit rose 6.7 per cent as the Group continued to focus on productivity and efficiency of its mail operations, particularly with investments in mail infrastructure.
Dr Wolfgang Baier, SingPost’s group CEO, said the company has emerged with a more stable and stronger foundation to its business since the start of its accelerated transformation.
