Singapore Post Limited (“SingPost”) has announced its results for the full year ended March 31, 2021.
Group revenue for the financial year rose by 6.9% to S$*1.4bn, largely led by strong e-commerce volume growth in both the Logistics as well as Domestic Post and Parcel segments. For the full year, e-commerce revenue represented 34% of total Domestic Post and Parcel revenue, up from 21% the year before. Net profit attributable to equity holders, however, declined to S$47.6m from S$91.1m in 2019, mainly due to COVID-19 related disruptions. This was partly offset by higher earnings contribution from the Logistics segment, as well as the absence of losses from discontinued operations.
In the Post and Parcel segment, revenue declined by 2.7% for the full year. International Post and Parcel volumes continued to be impacted by the constraints on air capacity in and out of Changi Airport. This has resulted in significantly higher conveyance costs with substantial reductions in margins for International Post and Parcel. The Domestic Post and Parcel business saw significant eCommerce volume and revenue growth on higher eCommerce adoption especially in H2, offsetting the continued decline in volumes of letters and printed papers. In addition, higher costs were also incurred for Domestic Post and Parcel as a result of health and safety arrangements for COVID-19. Profit on operating activities for the segment consequently dropped by 63.7% to S$43.5m over 2020.
In the Logistics segment, revenue rose by 23.5% in 2020, compared to 2019. The segment delivered a strong turnaround to record a profit on operating activities of S$11.3m for the full year, as all entities benefitted from the accelerated adoption of e-commerce activities in the past year. CouriersPlease has seen solid volume growth in Australia, with revenue rising 50.3% for the full year. In December 2020, SingPost has also completed the Tranche One investment of Freight Management Holdings Pty Ltd (‘FMH’), a fourth-party logistics provider in Australia, which will allow SingPost to further scale its Business-to-Business-to-Consumer (‘B2B2C’) logistics capabilities as well as to make further inroads in the e-commerce market in Australia. This will further entrench Australia as a second home market for the Group and capitalise on the growing eCommerce volumes within Australia.
SingPost’s freight forwarding entity Famous Holdings, recorded higher volumes as well as higher sea freight rates, in particular for H2, resulting in revenue rising 27.0% for H2 and 14.5% for the full year.
As the pandemic continues to create disruptions across the global economy, SingPost said it is actively adapting measures to navigate the current environment, including seeking new e-commerce growth opportunities in Singapore, Australia and the Asia-Pacific region.
Source: Singapore Post
*S$=$0.75/€0.62
