Singapore Post 3Q operating profit S$3.8M

Singapore Post 3Q operating profit S$3.8M

SingPost Reports Q3 Operating Profit of S$46.1M, eCommerce Segment Posts S$3.8M Loss

SingPost reported an operating profit of S$46.1 million for the third quarter of FY17/18, a 23.7% year-over-year increase, driven by strong performance in its Postal and Logistics segments. Total revenues for the quarter reached S$412.8 million, up 11.7% year-on-year, contributing to cumulative revenues of S$1,121.6 million across the first three quarters of the fiscal year.

The Postal segment saw a 15.8% revenue increase to S$166.0 million, with operating profit rising 4.0% to S$40.1 million. This growth was fueled by a 37.7% surge in international mail revenue, attributed to higher cross-border e-commerce deliveries in November 2017. Meanwhile, the Logistics segment generated S$173.9 million in revenue (up 1.5% year-on-year), though its operating profit declined sharply by 44.8% to S$4.8 million. Higher line haul and handling costs, coupled with reduced contributions from Quantium Solutions, pressured profitability in this division.

The company's eCommerce segment, however, continued to operate at a loss. Despite a 19.7% revenue increase, the segment recorded an operating loss of S$3.8 million. This underscores ongoing challenges in scaling profitability for SingPost's digital initiatives.

Year-to-date, SingPost's results reflect a mix of resilience and strategic challenges. While cross-border e-commerce and postal services drove growth, cost pressures in logistics and unprofitable eCommerce operations highlight areas requiring optimization. The company's full-year outlook will depend on its ability to balance expanding revenue streams with cost management across segments.

According to SingPost FY17/18 Q3 results (February 6, 2018).

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