Singapore Post (SingPost) has reported group revenue of $437 million in the 3QFY2021 ended December, up 24% y-o-y. This was driven mainly by Famous Holdings (FMH), growth in e-commerce logistics and the consolidation of FMH. The higher revenue was partly offset by lower international post and parcel (IPP) revenue, says the group in its 3Q business update on Feb 25.
During the quarter, group operating expenses increased 23% y-o-y to $400 million from volume-related expenses on the back of higher volume in freight forwarding and e-commerce logistics.
3QFY2021 group operating profit surged 46% y-o-y to $38 million mainly due to higher profit from FMH, domestic post and parcel (DPP) and from the consolidation of FMH.
In Singapore, SingPost saw DPP e-commerce logistics volume increase 50% y-o-y to 15.5 million items due to higher e-commerce activity as well as the nationwide distribution of ART kits and mouth gargles.
During the same period, DPP letters & printed papers fell 9% y-o-y to 108 million items due to electronic substitution, but stood 8% higher q-o-q due to the year-end seasonal peak.
SingPost’s IPP volume fell 21% y-o-y to 4.8 million kg no thanks to the ongoing disruption to international air freight out of Changi Airport due to the Covid-19 pandemic.
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The freight forwarding business under Famous Holdings continued its strong performance, benefitting from higher volume and sea freight rates caused by global supply chain disruptions.
Consignment volume in Australia rose 7% y-o-y to 7.8 million mainly due to the addition of FMH’s volume for December 2021.
As at end-December, cash and cash equivalents stood at $466 million.
Shares in SingPost closed at 62.5 cents on Feb 24.
Photo: The Edge Singapore
