Growth in e-commerce-related activities and acquisitions helped generate substantial growth inrevenues and profits at Singapore Post, in second-quarter results published yesterday.
Revenue for the second quarter to 30 September increased 32.6% to S$203.8 million (€120million), with regional businesses accounting largely for the growth. Excluding contributions fromthe new subsidiaries, the group achieved a 9.6% increase in revenue, on the back of growth ine-commerce-related activities across the business segments.
Revenue from the group’s Mail business grew 13.4% to S$119.7 million, as volumes of e-commercepackages continued to show strong growth, particularly in international transhipments. Domesticmail volume saw marginal growth in the second quarter and declined 1.5% in the first half.
Logistics revenue rose 79.1% to S$94.6 million, boosted by organic and inorganic contributions.The company’s Quantium Solutions business continued to record good growth in regional e-fulfilmentactivities.
Inorganic contributions came from the group’s new Lock+Store and Famous Holdings businesses,acquired in January 2013 and February 2013 respectively. Excluding the acquisitions, Logisticsrevenue growth was 12.1%.
In Retail and e-commerce, revenue rose 4.7% to S$21.3 million, on the back of growth in thegroup’s e-Commerce businesses and financial services.
Wolfgang Baier, group CEO, commented: “There is good growth momentum across our regionalbusinesses, particularly from the new M&As. However, we remain cautious as letter mail volumesremain challenging and e-substitution continues.
“In view of this, we have intensified this stage of SingPost’s transformation and have beengrowing our regional e-commerce packages and transhipments in the international mail business.”
Over the last two years, the group has been developing its capabilities to capitalise on thebooming e-commerce market, especially in Asia.
Baier commented: “With the fast-growing e-Commerce market in Asia, businesses from Europe andAmerica are looking to tap the huge market potential here. SingPost knows the Asian terrain, hasaccess through its postal networks and regional set-up, as well as end-to-end low cost e-commercelogistics solutions for them.”
