SingPost Q1 profit dips 3.5% to $39.24m

Revenue goes up 3% to $142.3m for the quarter

SINGAPORE Post (SingPost) saw net profit dip 3.5 per cent to $39.24 million while revenue climbed 3 per cent to $142.3 million for the first quarter ended June 30, 2011.

Underlying net profit – which excludes one-off items – was flat at $37.37 million. Earnings per share for the quarter were 2.042 cents, compared to 2.111 cents in the corresponding quarter a year ago.

Contributions from its various business segments were mostly higher with revenue from its mail segment increasing 1.6 per cent to $97.24 million.

Logistics revenue, which grew the strongest, was up 10.7 per cent to $51.24 million. Retail revenue increased 1.5 per cent to $16.56 million due to higher retail product contributions, which offset the decline in financial services revenue after the sale of its SpeedCash business in March this year.

Rental and property-related income rose 5.1 per cent to $10.6 million while miscellaneous income increased 7.9 per cent to $4.5 million.

Meanwhile, total expenses for the group were up 6 per cent to $109.3 million. However, net cash from operating activities also came in higher at $37.7 million in Q1 FY11/12, compared to $29.1 million in the corresponding quarter last year.

The board has declared an interim quarterly dividend of 1.25 cents per ordinary share, payable on Aug 31.

‘The group continues to face formidable challenges in the postal industry arising from e-substitution, competition and rising operating costs and is accelerating efforts to diversify and grow its businesses,’ SingPost said. ‘Besides driving organic growth in Singapore and in the regional markets through Quantium Solutions, the group will continue pursuing acquisition opportunities in the Asia-Pacific region.’

Shares in SingPost closed at $1.10 yesterday, unchanged.

SingPost buys stake in China’s 4PX

SINGAPORE Post (SingPost) has, through its wholly owned subsidiary Quantium Solutions International (QSI), acquired a 20 per cent stake in Shenzhen 4PX Express Co for 60 million yuan (S$11.4 million).

4PX provides international express delivery services, freight forwarding, and import and export of goods and technology. It is also the global distribution partner for eBay and PayPal in the China market.

The investment in 4PX helps SingPost to develop a more balanced revenue and earning portfolio from growing non-mail revenue and increasing overseas contribution, SingPost’s CEO (postal and corporate services) Ng Hin Lee said. It also provides a platform for entry into the outbound logistics and the high-growth e-commerce market in China, the Asia Pacific region, and globally, especially the US, the UK and Australia, where 4PX has operations, he added.

SingPost’s regional business currently spans 10 countries in Asia Pacific.

According to Wolfgang Baier, SingPost’s CEO (international), the firm has invested in other logistics companies in the region such as GD Express Carrier Bhd in Malaysia, and Indo Trans Logistics Corporation in Vietnam. He said these companies provide the right fit for SingPost’s expansion, adding that the investment in 4PX will further boost SingPost’s ambition in e-commerce and regional logistics.

SingPost raises its stake in Malaysian firm

SINGAPORE Post Limited (SingPost) announced yesterday it has entered into a memorandum of understanding (MOU) with Malaysian company Efficient, and has acquired 50 million ordinary shares in Efficient through a private placement.

Efficient is primarily involved in providing integrated outsourcing solutions in data and document processing, and is listed on the main market of Bursa Malaysia.

The non-binding MOU marked the collaboration between the parties in the setting up of data and document management business operations in Indonesia.

In addition, SingPost and Efficient will jointly identify business opportunities, and may agree to engage in discussions and negotiations with other potential investors and/or business partners related to the collaboration.

SingPost, through its wholly owned subsidiary, Singapore Post Enterprise Private Limited, has also acquired the Efficient shares for an aggregate consideration of RM9.75 million (S$3.97 million).

This will see SingPost’s stake in Efficient rising to 71.24 million shares after the acquisition – up from 21.24 million shares prior to it.

Hence, SingPost now owns 10.06 per cent of the enlarged issued capital of Efficient.

SingPost unit buys 30% stake in ITL in Vietnam

SINGAPORE Post, which is striving to beef up its presence outside of Singapore, announced yesterday that its wholly owned subsidiary, Singapore Post Enterprise, is scooping up a 30 per cent stake in Vietnam-based Indo Trans Logistics Corporation (ITL) for US$10.8 million.

Established in 1999, ITL offers integrated logistics solutions with businesses in air and sea freight forwarding, third-party logistics solutions and distribution, and general sales agency for airlines. It has offices in the key cities in Vietnam.

‘This strategic investment in ITL … gives us a foothold into Vietnam and the Indochina region, which are emerging markets with significant logistics and related opportunities,’ said Wolfgang Baier, SingPost’s chief executive officer (international). ‘SingPost has stepped up its efforts to transform and grow and we have been actively pursuing growth beyond our mail business and expanding into the region.’

SingPost is keen to boost revenues from overseas and to diversify its portfolio with larger contributions from non-mail businesses such as logistics and e-commerce.

Last month, it bought the remaining 30 per cent in hybrid mail business DataPost from Oce NV for $6 million. Before that, SingPost already held a 70 per cent stake in DataPost.

Other acquisitions include Quantium Solutions, a mail-logistics solutions provider with operations in 10 Asia-Pacific countries, and a 27.08 per cent investment in Malaysia’s GDEX Express Carrier Berhad, an express carrier service provider which offers express delivery and customised logistics services.

And in 2009, it picked up a 30 per cent stake in Postea Inc, a US-incorporated technology company specialising in solutions for the postal and logistics industry.

Shares in SingPost closed at $1.15 yesterday, up one cent.

SingPost unit buys 30% stake in ITL in Vietnam

SINGAPORE Post, which is striving to beef up its presence outside of Singapore, announced yesterday that its wholly owned subsidiary, Singapore Post Enterprise, is scooping up a 30 per cent stake in Vietnam-based Indo Trans Logistics Corporation (ITL) for US$10.8 million.

Established in 1999, ITL offers integrated logistics solutions with businesses in air and sea freight forwarding, third-party logistics solutions and distribution, and general sales agency for airlines. It has offices in the key cities in Vietnam.

‘This strategic investment in ITL … gives us a foothold into Vietnam and the Indochina region, which are emerging markets with significant logistics and related opportunities,’ said Wolfgang Baier, SingPost’s chief executive officer (international). ‘SingPost has stepped up its efforts to transform and grow and we have been actively pursuing growth beyond our mail business and expanding into the region.’

SingPost is keen to boost revenues from overseas and to diversify its portfolio with larger contributions from non-mail businesses such as logistics and e-commerce.

Last month, it bought the remaining 30 per cent in hybrid mail business DataPost from Oce NV for $6 million. Before that, SingPost already held a 70 per cent stake in DataPost.

Other acquisitions include Quantium Solutions, a mail-logistics solutions provider with operations in 10 Asia-Pacific countries, and a 27.08 per cent investment in Malaysia’s GDEX Express Carrier Berhad, an express carrier service provider which offers express delivery and customised logistics services.

And in 2009, it picked up a 30 per cent stake in Postea Inc, a US-incorporated technology company specialising in solutions for the postal and logistics industry.

Shares in SingPost closed at $1.15 yesterday, up one cent.