Singapore Post (SingPost) achieved considerable growth in revenues for the fourth quarter andfinancial year ended 31 March 2011 thanks to solid performances of its mail and logistics units but
its profits declined.In 2010/11, the group’s revenue rose by 7.7% to S$565.8 million (€311.72 million). Net profitdeclined 2.4% to S$161 million (€88.7 million). Excluding one-off items such as the amortisation ofdeferred gain on intellectual property rights, benefits from the Jobs Credit Scheme and reversal ofimpairment charge, the Group’s underlying net profit rose 1.2% to S$149.6 million (€82.42million).
Mail revenues rose 7.1% to S$385.6 million (€212.45 million) due to higher domestic andinternational mail traffic and better performance in hybrid mail.
Logistics revenue increased 14.0% to S$198.3 million (€109.26 million) with higher contributionsfrom Quantium Solutions, transhipment and vPOST shipping activities. Retail revenue remained stableat S$66.8 million (€36.81 million).
The group’s total expenses for the year increased 10.8% to S$426.1 million (€234.77 million) dueto higher labour and related costs as well as higher volume-related expenses in tandem with trafficgrowth.
In the fourth quarter of 2010/11, group revenues grew 5.7% to S$141.5 million (€77.96 million).Net profit declined by 9.6% to S$37 million (€20.38 million). Excluding one-off items, theunderlying net profit decreased by 4.6% to S$34.8 million (€19.17 million). The mail businessposted a 4.3% increase in revenue to S$96.2 million (€53 million), from higher contributions indomestic and international mail. Domestic mail traffic grew thanks to the recovering businessenvironment while international mail traffic increased in tandem with the growing e-commerce.
SingPost’s logistics business recorded an 11.6% increase to S$49.9 million (€27.49 million) withincreased contributions from Quantium Solutions, Speedpost, transhipment and vPOST shippingactivities. Retail business registered a marginal 0.4% increase in revenue to S$16.6 million ashigher contributions from financial services were offset by the decline in retail and agencybusiness.
Ng Hin Lee, Deputy Group Chief Executive Officer of SingPost, commented: “SingPost has benefitedfrom the increased economic activities in the first three months of the year. The proliferation inregional e-commerce activities has also given our logistics revenue a boost.”
With the booming online trade, SingPost is also seeing rapid growth in e-commerce parcels. Toaddress the growing market, it introduced an innovative postage-paid delivery solution calledSmartPac, giving consumers another choice of having their items delivered to their doorstep thenext working day for a fixed price. SmartPac is ideal for accessories, clothing, electronics,shoes, books, toys, bags or other items, providing local online retailers another convenient andaffordable solution.
Other innovative products that were launched during the financial year include Express Pre-9am,Speedpost Import Express and Speedpost@Changi.
“While we focus on growing the business and re-inventing ourselves to remain relevant, we areequally committed to service quality. We have stepped up our efforts in process improvements andquality checks and will not hesitate to inject more resources to ensure a good level of service,”Ng said.
Wolfgang Baier, Chief Executive Officer (International) who joined SingPost in February 2011 todrive regional growth and diversification, outlined the company’s growth strategy: “Our prioritiesare in three areas. Firstly, to grow regional logistics, focusing on warehousing, fulfilment andend-delivery in Asia Pacific. Secondly, as we strengthen our regional capabilities through ourregional vehicle Quantium Solutions, we will grow our e-fulfilment business. The growth ine-commerce activities locally and in Asia has been phenomenal and the opportunity to tap thisburgeoning market is just tremendous. Thirdly, we are driving growth through e-commerce. Ourplatform in vPOST is being further developed to fuel growth and traffic, and new online serviceswill be introduced. We are also working on new innovative e-commerce solutions to serve the SMEmarket.”
Looking ahead, Ng stressed that e-substitution and declining mail volumes continue to affectpostal companies. “The outlook remains challenging for the global postal landscape. It isimperative that we stay relevant, engaging the new generation of customers who grew up in thedigital era. One of our current priorities is to transform our mail business to meet the evolvingneeds of the market. In the second half of this year, we will roll out a digital mailbox solutionto offer options of physical and digital mail. Over the long term, as letter-mail demand changes,the platform will enable us to retain our relationship with our corporate and walk-in customers aswe migrate them to new products and services, which we term post letter-mail products.”
