Singapore Post (SingPost) has reported group revenue of $351 million for the 3QFY2020/2021 ended December, 1% lower than revenue of $356 million in the corresponding quarter a year ago.
Q-o-q, the figure represented a 1% growth from 2QFY2020/2021’s $347 million driven by growth in the logistics segment.
The last mile delivery business in Australia, CouriersPlease, and Singpost’s freight forwarding entity, Famous Holdings, recorded revenue growth on the back of higher volumes.
Domestic Post and Parcel, as well as e-commerce revenue rose 56% y-o-y and 16% q-o-q to $20 million mainly boosted by revenue growth from e-commerce deliveries, offsetting the decline from letters and printed papers.
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Group profit on operating activities fell 38% y-o-y to $26 million largely due to the impact of Covid-19 disruptions, in particular on the International Post and Parcel business. Q-o-q, group profit saw a 41% increase driven by improved contribution from Post & Parcel as well as the Logistics segment mainly due to higher earnings from CouriersPlease and Famous Holdings.
In its 3Q business update, the group noted that it continues to experience strong e-commerce volume growth in Singapore and Australia.
Volume for e-commerce rose 36% y-o-y and 11% q-o-q to 10.3 million items driven by the peak shopping season during the period.
CouriersPlease saw volume growth of 74% y-o-y and 9% q-o-q to 7.3 million items due to the acceleration of e-commerce adoption in the market, in part brought about by Covid-19.
Volumes of letters and printed papers in Singapore fell 21% y-o-y and 4% q-o-q to 119 million items due to electronic substitution.
SingPost’s International Post and Parcel business continue to be affected by the disruption to international air freight out of Changi Airport.
The SingPost Centre retail mall and office saw its occupancy rate remain relatively stable at 99.8% for the mall and 98.1% for its office/enrichment segment as at Dec 31, 2020, as the majority of leases were renewed.
SEE: Covid-19 disruption in postal and logistics services to hit Singpost: CGS-CIMB
Retail mall operations in the Centre saw q-o-q improved shopper footfall traffic and tenant sales during the quarter.
The group says its net cash position improved in Dec 31, 2020, compared to March 31, 2020, due to “positive movements in working capital”.
The group says it is “actively adapting measures” to navigate the current environment, including seeking new e-commerce growth opportunities in Singapore, Australia and Asia-Pacific.
In a separate announcement, the group announced the establishment of its board sustainability committee to help “accelerate the company’s environmental, social and governance (ESG) transformation and journey”.
Shares in Singpost closed 0.5 cent higher or 0.7% up at 70.5 cents on Feb 3.
