Singapore Post improved revenues and profits in the quarter ending December 31, 2010, thanks togrowth in e-commerce logistics and the general economic recovery.
The company increased its group revenue by 6.3% to S$148.5 million (€84.9 million) in Q3FY2010/11 with improved performances from the Mail and Logistics segments. Mail revenue grew 7.5%to S$101.5 million as domestic and international mail recorded stronger performances.
In Logistics, revenue increased 10.2% to S$54.2 million due to growth in Quantium Solutions,trans-shipment and vPOST shipping activities. Earlier this month the company had revealed that itsvolume of packets and parcels increased 30% between June and November 2010. Retail revenue stayedconstant at S$16.8 million with growth in financial services offset by the decline in agencyservices and retail business.
Total expenses for the Group amounted to S$110.5 million, an increase of 10.3%. Labour andrelated expenses increased as a result of higher contract labour costs and the absence of thebenefit from the government’s Jobs Credit Scheme, which ceased in June 2010. Volume-relatedexpenses were higher due to higher traffic expenses arising from increased international trafficand conveyance costs.
Net profit for the Group was S$43.8 million, or flat compared to the corresponding period lastyear, while underlying net profit was S$40.9 million, an increase of 5.1%.
Ng Hin Lee, Deputy Group Chief Executive Officer of SingPost, said: “In Q3, we benefitted fromthe increase in business and e-commerce logistics activities, which boosted our mail and logisticsrevenues. Our trans-shipment business has also grown rapidly in tandem with the boom in e-commerceactivities in the region.”
The financial improvement comes amid a restructuring of the company designed to position it forfuture growth and regional expansion. From Febuary 7, Ng Hin Lee will become CEO, while consultantWolfgang Baier will oversee the Logistics, Retail and Financial Services and Sales and Marketingdivisions as well as Quantium Solutions.
“With the global trend of declining mail volumes, it is imperative that we reduce our relianceon mail revenue and diversify our revenue base, growing our business within and outside Singapore,”Ng commented. “That said, mail is still a key business for us and we will continue to focus andinvest in it to meet our customers’ changing and growing needs. The new structure will help usachieve our aim to build a more balanced revenue and earnings profile, while taking care of ourexisting customers.”
