SingPost – Q108
All the data are extracted from the results,
- * – Special Div = 10cts for Q2 (Sep-05)
- All figures in S$,000 unless otherwise stated
- FY is end-Mar
- The Group posted a 10.0% growth in revenue from S$105.1 million to S$115.5 million, with all three business segments achieving improved performances.
♦ Mail – Revenue increased 10.9% from S$82.4 million to S$91.4 million, on the back of higher contributions from domestic mail, international mail and hybrid mail. The first quarter included one-off mailings such as the GST Offset Package.
♦ Logistics – Revenue was up 3.8% from S$15.5 million to S$16.1 million on increased Speedpost traffic and vPOST on-line shopping transactions.
♦ Retail – Revenue rose 10.6% from S$12.7 million to S$14.1 million, underpinned by growth in financial services.
- Rental and property-related income showed an 11.4% increase from S$4.8 million to S$5.3 million. The Group continued to benefit from higher rental rates and yield enhancement initiatives at SingPost Centre.
- Miscellaneous income rose by 157.5% from S$0.8 million to S$2.1 million. During the first quarter, the Group recorded a gain of S$1.9 million from the disposal of a non-core property.
- Total expenses increased by 8.0% from S$73.6 million to S$79.5 million, as a result of higher labour and related costs, volume-related costs as well as selling expenses, which rose in tandem with increased business activities. Finance expenses declined by 15.4% from S$2.7 million to S$2.3 million as the Group fully repaid the bank term loan obtained in March 2006.
- The Group achieved a 15.3% growth in operating profit from S$39.4 million to S$45.5 million, with all business segments contributing to the improvement. Mail operating profit rose by 14.3% from S$32.5 million to S$37.2 million, on good operating leverage, while Logistics operating profit improved by 7.6% from S$1.9 million to S$2.1 million. In Retail, operating profit rose by 11.9% from S$1.8 million to S$2.0 million.
- The Group’s share of profit from the Spring JV included a one-off gain of S$1.5 million from the sale of its US business. Excluding the one-off gain, contributions from the Spring JV rose by 10.7% or S$0.1 million from S$1.4 million to S$1.5 million.
- As a result of the good operational performance, the Group achieved a 24.0% increase in net profit from S$30.9 million to S$38.4 million. Excluding gains from the disposal of non-core properties and the one-off gain on the sale of the US business by the Spring JV, the Group’s underlying net profit showed a 14.9% growth from S$30.4 million to S$34.9 million.
- Believes it is well positioned to address the challenges of the deregulation of the basic mail services market
- Actively pursuing and implementing initiatives to enhance and grow its core business of Mail and Logistics
- Diversification strategy – Will continue to leverage its retail and distribution network to offer higher value products and services to customers
- Continue to extend its regional reach with initiatives to roll out and grow the hybrid mail and vPOST businesses in the regional markets
Source : SGX