- Revenue increased 12.4% y-o-y, driven by Australia logistics business
- Net profit of S$24.7 million weighed down by losses in Post & Parcel business
- Board initiates strategic review of the Group’s portfolio of businesses
SINGAPORE, 11 May 2023 – Singapore Post Limited (“SingPost”) today announced its results for the second half and full year ended 31 March 2023
The Group’s transformation led to revenue growth of 12.4% to S$1.87 billion for the full year ended 31 March 2023 (“FY22/23”). The Group’s new engine of growth in Australia replaced the declines in revenues from Post & Parcel and freight forwarding businesses.
Logistics revenue increased by 32.4% in FY2022/23, mainly due to the consolidation of Freight Management Holdings Pty Ltd (“FMH”) for the full year compared to four months in the previous financial year.
FMH’s B2B business continued to perform well, driven by increased volumes from customers and acquisition of new customers, as well as inorganic contribution from its strategic acquisitions. Revenue from the Australia businesses, FMH and CouriersPlease, increased from S$413.6 million to S$815.1 million for the full year with the consolidation of FMH.
Famous Holding’s revenue declined 12.7% from S$478.4 million to S$417.7 million, as freight rates and volumes normalised post-pandemic.
Overall Logistics operating profit grew by 91.3% for the full year, largely contributed by the strong performance of both FMH and Famous Holdings.
Post & Parcel revenue was lower by 16.2% for FY2022/23. Domestic Post and Parcel (“DPP”) revenue declined by 9.3% for the full year. There was a higher base effect from the previous year which recorded significant eCommerce volumes during the pandemic. eCommerce logistics volumes were also lower due to reduced volumes from a major eCommerce customer who insourced part of its logistics. The volume of letters and printed papers continued to decline. International Post & Parcel (“IPP”) revenue declined by 20.6% for the full year. IPP was negatively impacted, particularly in Q1, by pandemic-related lockdowns in China which reduced cross-border eCommerce logistics volumes.
The Post & Parcel segment recorded a full year loss of S$15.9 million, compared to a profit of S$24.9 million last year. The loss in DPP and IPP was due to the decline in delivery volumes, coupled with inflationary increases in labour, utility, fuel and conveyance expenses. SingPost is reviewing the commercial sustainability of the domestic postal business.
Group’s transformation into international logistics
Through the transformation programme, 86% of the Group’s revenue is now generated internationally through both organic and inorganic growth.
“In the first phase of our transformation, we have focused on building a sustainable integrated logistics business, expanding into Australia and developing our international cross-border eCommerce logistics business. Our performance in Australia reflects our growth momentum and successful execution of our strategy,” said Vincent Phang, SingPost’s Group Chief Executive Officer.
SingPost Board initiates Group’s strategic review
SingPost is transforming into a global logistics enterprise and is well positioned in high growth markets with the scope for further transformational investment. As a next step of the transformation, the SingPost Board has initiated a strategic review of the Group’s portfolio of businesses, with a view to enhancing shareholder returns and ensuring the Group is appropriately valued.
The Group will make further announcements as appropriate on the outcome of the strategic review. Shareholders and investors are advised to exercise caution when dealing in the shares of the Company.
Proposed final dividend
The Board is recommending a final exempt (one-tier) dividend of 0.40 cents per ordinary share for the financial year ended 31 March 2023. Including the interim dividend of 0.18 cents per share paid out in November 2022, total dividend would amount to 0.58 cents per share, or approximately 40% of the underlying net profit.
The proposed final dividend is subject to the approval of shareholders at the 31st Annual General Meeting to be duly convened. The date payable and record date of the final dividend will be announced at a later date. These condensed interim financial statements do not reflect this dividend, which will be accounted for in shareholders’ equity as an appropriation of retained earnings in the financial year ending 31 March 2024.
Please refer to the Group’s SGX announcement for further details.
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