SingPost's Q1 net profit dips marginally; it will pay quarterly dividend of 1.25 cents a share

Singapore Post earned 2 per cent less in its first quarter.

The postal company registered a net profit of $37.3 million, down from $38.1 million in the same period last year.

Revenue for the three months to June 30 rose by 32.8 per cent to $201.3 million.

Mail revenue was up 13.7 per cent at $114.7 million, benefiting from the growth in international e-commerce packages, and the full consolidation of Novation Solutions.

However, domestic letter-mail volume continued to slide for the seventh consecutive quarter.

In the logistics segment, revenue stood at $93.8 million with the full consolidation of new subsidiaries, Lock+Store and Famous Holdings, and the increase in regional e-fulfilment business.

Revenue for the retail and e-commerce segment was flat at $20.8 million.

Front-end e-commerce business comprising vPOST, Clout Shoppe and SP e-Commerce services grew while contributions from retail and financial services slowed.

Rental and property-related income rose 8.7 per cent to $11.2 million with growth in rental income from SingPost Centre.

Earnings per share eased to 1.775 cents from 1.82 cents previously while net asset value per share inched down to 35.17 cents compared to 35.29 cents as at March 31.

SingPost said it will accelerate its drive toward greater productivity.

One major investment is the S$45 million integrated sorting infrastructure to handle the changing profile of mail, which is seeing rapid growth in packages.

The new machines, which are expected to be commissioned towards the third quarter of next year, will increase productivity significantly.

They will be able to sort 95 per cent of letters compared to 85 per cent currently and more than 90 per cent of publications from the current 58 per cent.

More than 90 per cent of packages will machine-sorted, up from 85 currently.

The board has declared an unchanged interim quarterly dividend of 1.25 cents a share, which will be paid on Aug 30.