SingPost EBIT slips by 2% to $21m
Its international post and parcel business continue to be affected by disruptions caused by COVID-19.
Singapore Post (SingPost) reported a slight decrease in their earnings before interest and taxes, at 2% to $21m, for the first quarter of its financial year ending 30 June.
In an SGX disclosure, the postal service attributed this year-on-year decline to its international post and parcel business, which posted a lower volume.
“The international post and parcel business continued to be affected by the ongoing disruption to international air freight out of Changi Airport caused by COVID-19, which has resulted in higher international conveyance costs,” SingPost said.
The above-mentioned losses were partially offset by higher revenue from eCommerce logistics in Singapore and Australia, and higher Famous Holdings revenue due to property growth.
Its property segment also posted higher revenue from the absence of rental rebates provided to eligible tenants last year.
Group operating expenses declined 2% due to a decline in volume-related costs by 4%, mainly from the international post and parcel volume.
Its net cash position improved by 1% year-on-year, with total equity at $1.68b, due to positive net cash flow generated during the quarter.
“The group continues to see robust growth in e-commerce logistics. COVID-19 has proved to be a catalyst for e-commerce adoption globally, and this is poised to grow further as eCommerce cements its position as a new shopping norm,” SingPost said.