SingPost grows revenue in 2014 as profits slip back

Singapore Post has announced its unaudited financial results for the full year and fourth quarter ending March 31, 2015. It reported full-year revenue of S$919.58m, a 12% increase compared to the prior year. The company also reported net profit of S$157.61m, a decline of 17.9% year-on-year. Accordingly Singapore Post’s margin stood at 17.14%.

The improvement to revenue was attributed to growth in SingPost’s e-commerce and logistics businesses as well as contributions from new acquisitions.

Net Profit, which now includes fair value reporting of investment properties, fell because there was a larger magnitude of valuation gains in 2013 of S$44.5m compared to S$5.2m for 2014. This is ahead of the intended redevelopment and upgrading of retail units in the Singapore Post Centre.

The strongest performing business segment by revenue for 2014 was Logistics which grew 26.1% to S$464.8m. Revenue from Retail & eCommerce was higher by 6.2% to S$92m, while Mail grew 1.9% compared to the prior year at S$500.3m. Rental and property-related income declined marginally by 2.3% to S$43.9m.

In terms of operating profit Logistics’ full-year was S$21.5m, 34.42% higher than 2013, while Retail & eCommerce returned S$9.7m, an increase of 22.68% year-on-year. Mail, at S$144m, was flat against the prior year.

Wolfgang Baier, SingPost’s Chief Executive Officer said, “These results demonstrate how our efforts to transform ourselves into an e-commerce logistics leader is progressing. Our logistics business has grown 26.1% year-on-year and such healthy rates of growth will cushion our declining mail revenues. We are going to keep up our investments to build our regional network and e-commerce capability and by doing this, we are reinventing ourselves. Our roots in mail and parcels give us the advantage of being able to sustain high service standards. This puts us where we can serve the needs of tomorrow’s customers in the fast moving world of ecommerce and online transactions.”