Delivery volumes in SP Parcels, Couriers Please, and Famous Holdings increased.
Despite price pressures, Singapore Post's (SingPost) logistics segment posted operating profit of $4.9m in Q3, reversing from its loss of $4.2m last quarter.
CIMB Research said whilst QSI continued to face rising competition, all other subsidiaries (SP Parcels, Couriers Please, Famous Holdings) saw increased last-mile delivery and freight forwarding volumes.
Singapore Business Review previously reported that the business has been enduring doubtful debt provision for a key customer of Quantium Solutions International Pte. Ltd. (QSI) in Hong Kong.
Mitigating measures mentioned by the company at the recent results briefing include the further optimisation of process, the development of new products and revenue streams, and the reviewing of existing customer contracts.
Utilisation at the regional e-commerce logistics hub (ECLH) also improved for at both warehouse (Q3: 87%, Q2: 79%) and parcel sorting machine (Q3: 21%, Q2: 20%)
This should also help lift the logistics’ operating margin in the medium term, CIMB Research said.
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