Acquisitions and the growth of e-commerce activity helped drive earnings to record highs at Singapore Post in the first quarter.
Net profit shot up 15.8 per cent to $46.6 million in the three months to June 30 over the same period last year, thanks also in part to one-off gains from the disposal of subsidiaries Novation Solutions and DataPost (Hong Kong).
If these are stripped out, underlying net profit rose 8 per cent to $40.3 million, from $37.3 million a year earlier.
Revenue rose 20.7 per cent to $254.6 million, propelled by steady growth in the logistics and e-commerce businesses, customer acquisitions and higher traffic.
Expenses rose 24.9 per cent to $222.7 million, with the largest increase coming from volume-related costs from international postal traffic and increased e-commerce-related deliveries.
AT A GLANCE
REVENUE: $254.6 million (+20.7%)
NET PROFIT: $46.6 million (+15.8 %)
INTERIM DIVIDEND PER SHARE: 1.5 cents (+20%)
Chief executive officer Wolfgang Baier told a briefing yesterday that the latest numbers reflected the transformation of SingPost into an integrated logistics firm: "This quarter, our revenue and net profits are our highest ever. The partnerships we have built and the M&As (mergers and acquisitions) we have done are showing in our numbers. We are adding one or two major e-commerce customers each month."
Earlier this month, SingPost strengthened its collaboration with e-commerce giant Alibaba with an agreement to create an end-to-end logistics platform around its re-organised subsidiary Quantium Solutions International.
Earnings per share was 1.996 cents, up from 1.915 cents a year ago, while net asset value per share was 70.42 cents as at June 30, up from 68.37 cents at March 31.
The group declared an interim dividend of 1.5 cents per share to be paid on Aug 27.
This compares with an interim dividend of 1.25 cents per share paid a year ago.
The results were announced before the market opened.
SingPost shares closed up 1.5 cents at $1.92.