SingPost – BT
SingPost Q4 net drops 10.6% to $34.5m
But full-year net earnings rise 6.8% to $149.3m
SINGAPORE Post posted a 10.6 per cent year-on-year fall in net profit to $34.5 million for the fourth quarter despite a 5.7 per cent rise in revenue to $119 million.
But for the full year ended March 31, net profit climbed 6.8 per cent to $149.3 million, with revenue up 8.4 per cent at $472.6 million. Q4 earnings per share fell to 1.793 cents from 2.014 cents.
What caused the Q4 fall in net profit was an 18.4 per cent or about $14.5 million jump in total expenses to almost $93 million. Besides the higher costs of labour, goods and administrative expenses, the period included a one-off impairment charge of $4.9 million for two properties.
The increase in full-year revenue was due to all business segments showing improvement.
Full-year mail revenue grew by 7.9 per cent to $365.3 million, underpinned by higher mail volumes and price adjustments.
Logistics revenue rose by 6.7 per cent to $68.6 million due to higher contributions from Speedpost, vPOST online shopping and shipping transactions, and warehousing, fulfilment and distribution.
Retail recorded a 10.8 per cent increase in revenue to $61.6 million, as increased contributions from financial services and retail products offset the decline in agency and bill presentment services.
Said Wilson Tan, SingPost’s group chief executive officer: ‘We will focus on enhancing productivity and efficiency to better support our business growth. Barring any significant changes, we expect operating costs to stabilise.’
SingPost has proposed a final dividend of 2.5 cents per share (tax exempt one-tier), unchanged from the previous Q4. This is to be paid on July 18.
Together with the interim dividends of 1.25 cents paid out for each of the first three quarters, the total dividend for the year will total 6.25 cents per share.
As part of its efforts to cater to consumers’ needs, SingPost is looking into expanding its services and reach.
DMrocket, a one-stop direct mail centre, was launched during the year. SingPost also expanded its hybrid mail business into Hong Kong and Thailand.
It also launched two new remittance services – Visa money Transfer and Cashome to Indonesia and an investment fund with Prudential Asset Management.
Despite the fall in Q4 net profit, SingPost remains upbeat about its outlook.
‘We will continue to implement strategies to drive revenue in our core business of mail and logistics and also continue to leverage on our retail network. We are re-purposing our post offices to reap better yield,’ said Mr Tan.
‘We believe the group is positioned to tackle the challenges ahead and also on track for continued growth.’
SingPost shares closed 0.9 per cent higher at $1.16 yesterday.