In its latest 1QFY2022 ended June operational update, Singapore Post (Singpost) announced that its domestic post and parcel segment continued to trade in challenging conditions. Traditional letter mail volumes declined further, while costs rose significantly, particularly in fuel, labour and utilities. Additionally, a major eCommerce customer has insourced part of its own logistics, resulting in lower volumes.
The international post & parcel business continued to face significant headwinds from further supply chain disruptions, and there was also a knock-on impact from the ongoing lockdowns in cities in China due to the Covid-19 situation. These have adversely impacted conveyance costs for our supply chains originating from China. Additionally, despite the incremental air capacity improvement through Changi, this has yet to fully recover to pre-pandemic levels and air conveyance costs remained elevated through this period.
The above have negatively impacted the quarter’s performance and will result in an operating loss for the group's post and parcel segments for 1QFY2022.
The logistics segment (including Famous Holdings and Freight Management Holdings), on the other hand, continued to perform well. The property segment remained stable.
Further details will be disclosed when the group finalises and announces, in due course, its business update for 1QFY2022, which will include the group’s (unaudited) financial highlights, selected (unaudited) balance sheet items and key operational indicators.
In the meantime, the group advises shareholders and investors to exercise caution when dealing in its shares.
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As at Jul 15, shares in Singpost closed at 64 cents.
