SingPost operating profit falls 23.8% to $21.1m

Operating expenses outpaced its revenue growth.

Singapore Post Limited posted a 23.8% YoY decline in operating frot to $21.1m in Q3 FY 2024/2025 as expenses for both the Singapore and international businesses outpaced revenue growth, according to a bourse filing on 20 February 2025.

The decline was said to be driven primarily by ongoing macroeconomic pressures, including higher inflation, supply chain disruptions and a highly competitive environment.

In Singapore, SingPost’s overall delivery volumes in the postal and logistics business grew by 3.4%, as letter mail volume growth offset lower eCommerce volumes due to service performance issues.

However, YoY revenues declined due to lower revenues from logistics, financial and other services. The lower revenue, together with the high cost of operating the post office network, resulted in an operating loss in the Singapore postal and logistics business, compared to a profit in the same quarter last year.

Meanwhile, revenue in the International cross-border business declined YoY as a direct result of a 29.6% decline in YoY volumes. The continued contraction in cross-border eCommerce volumes and challenging business conditions resulted in an operating loss for the cross-border segment during the quarter.

Moving forward, SingPost plans to progressively divest non-core businesses and assets, starting with the proposed sale of its Australia business to Pacific Equity Partners for $1.02b, pending shareholder approval. After this divestment, the Group’s strategy will be reviewed and reset.