SingPost's profit falls by 5% in third quarter due to rising costs and investments

SINGPOST today said its third quarter net profit fell by 5.1 per cent to $39.5 million, owing to increased costs due to inflationary pressure and investments into service quality and growth.

Group revenue for the three months to Dec 31 grew 14.5 per cent to $171 million, driven mainly by growth in e-commerce activities as well as contributions from new investments.

Domestic mail volume declined for the fifth consecutive quarter but a very strong growth in international e-commerce packages and contributions from Novation Solution, which was acquired in May last year, helped to raise overall mail revenue to $118.1 million.

Logistics revenue rose 10.9 per cent to $63.2 million, with growth coming from e-fulfilment activities in Singapore and the region.

The retail segment posted a 19.8 per cent increase in revenue to $21.1 million on the back of higher contributions mostly from e-commerce business Clout Shoppe as well as from financial services.

Rental and property-related income rose 4.2 per cent to $11.1 million, as a result of growth in rental income.

"Regardless of the fact that domestic mail volume is falling, we are continuing to invest in service quality," said SingPost chief executive Wolfgang Baier.

"We take our public service obligations very seriously and put in additional resources, for instance, to cater to the peak festive months."

This included getting its postmen to deliver special packages and parcels on two Saturdays last month.

Earnings per share slipped to 1.889 cents from 2.2 cents previously.

The company declared an interim quarterly dividend of 1.25 cents a share, to be paid on Feb 28.