SingPost full year net profit up 278.4 per cent to S$126.4 million
- Revenue rose 11.7 per cent to S$412.8 million for the third quarter of FY2017/18
- Excluding exceptional items, underlying net profit rose 11.9 per cent on stronger performance of Postal, eCommerce and Property segments
- Q3 FY2017/18 dividend of 0.5 cent per share declared
|Variance(%)||Full year FY17/18
|Full year FY16/17
|Rental & property related income||13,926||8,807||58.1||47,499||36,574||29.9|
|Operating profit before exceptional items||31,407||26,607||18.0||143,506||147,010||(2.4)|
|Underlying net profit||15,266||21,368||(28.6)||104,951||115,612||(9.2)|
|Earnings per share(cents)||0.90||(3.03)||4.92||0.85|
|Dividend per share(cents)||2.0||0.5||3.5||3.5|
N.M. – Not meaningful
SINGAPORE, 11 May 2018 – Singapore Post Limited (“SingPost”) today announced its results for the full year ended 31 March 2018.
Revenue for the year increased 8.6 per cent to S$1.46 billion on growth in eCommerce-related activities across the Postal and Logistics segments.
Net profit attributable to equity holders rose 278.4 per cent to S$126.4 million, largely due to the absence of one-off impairment charges. Excluding exceptional items, underlying net profit declined 9.2 per cent to S$105.0 million. While the eCommerce and Property segments saw improved performance, Logistics and Postal operating profits fell.
For the fourth quarter ended 31 March 2018, revenue grew 13.5 per cent to S$367.5 million. Net profit attributable to equity holders improved to S$23.9 million, from a loss of S$65.2 million, which reflected impairment charges in exceptional items. Operating profit, excluding exceptional items improved 18.0 per cent. Lower contributions from associates and increased tax provision however resulted in underlying net profit for the quarter declining 28.6 per cent to S$15.3 million.
Mr Paul Coutts, Group Chief Executive Officer, said: “SingPost is well positioned to benefit from the strong growth in global eCommerce and last-mile deliveries as we progress to the next phase of our strategy.”
Revenue grows on higher eCommerce-related activities
Postal revenue rose 15.0 per cent driven by higher eCommerce deliveries. Operating profit declined 4.0 per cent with a change in margin mix.
Logistics revenue increased 4.3 per cent across the Group, driven by growth in last mile eCommerce delivery volumes, as well as increased freight forwarding volumes. Operating profit declined as margins were impacted by continued investment in the business, and pricing pressures in North Asia.
Revenue of the eCommerce segment was stable despite the loss of two major customers the prior year, and accelerated by 15.7 per cent in the fourth quarter. Operating loss was reduced by more than 50 per cent on improved performance due to TradeGlobal’s turnaround business plan.
Rental and property-related income increased 29.9 per cent on higher rental income from the SingPost Centre retail mall. Committed occupancy rose to 95.6 per cent.
Free cash flow improves significantly
For the full year ended 31 March 2018, free cash flow grew to S$136.1 million, from S$0.3 million the previous year. This was due to reduced capital expenditure, following the completion of the Regional eCommerce Logistics Hub and SingPost Centre retail mall.
For the fourth quarter of FY2017/18, the Board of Directors is recommending a final dividend of 2.0 cents per ordinary share (tax exempt one-tier). This would bring the annual dividend for the financial year to 3.5 cents per share, representing a payout ratio of 76 per cent of underlying net profit. The proposed dividend is subject to shareholders’ approval at the Annual General Meeting in July 2018.
Mr Coutts added: “We continue to execute on our transformation and build on our partnership with Alibaba in eCommerce. We are integrating and scaling our eCommerce businesses in the US and Southeast Asia, as well as the rest of our overseas operations, and optimising the cost structure of the SingPost Group.”
About Singapore Post Limited
For over 150 years, Singapore Post (SingPost), as the country's postal service provider, has been delivering trusted and reliable services to homes and businesses in Singapore.
Today, SingPost is pioneering and leading in eCommerce logistics as well as providing innovative mail and logistics solutions in Singapore and around the world, with operations in 19 markets.
Building on its trusted communications through domestic and international postal services, SingPost is taking the lead in end-to-end integrated and digital mail solutions. The suite of SingPost eCommerce logistics solutions includes front end web management, warehousing and fulfilment, last mile delivery and international freight forwarding.
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