SingPost announces strong growth in its e-commerce business

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Singapore Post (SingPost) has announced its results for the first nine months of the financial year ended December 31, 2015. 

Continuing expansion in e-commerce and logistics activities, along with contributions from new subsidiaries, raised SingPost’s revenue for the first nine months by 24.3% to S$834m (US$594m). Operating profit improved 18.5% to S$176.8m (US$125.6m) due to strong growth in logistics and e-commerce-driven international mail, as well as one-off gains from divestments. These improvements came during the peak season and arose from increases in scale and synergies from post-merger integration of new subsidiaries. Net profit was S$143.5m (US$101.9m), an increase of 17.6%.  

These figures bear out the group’s transformation into a global e-commerce logistics company, which was achieved while growing underlying net profit, up 1.2% to S$121.8m (US$86.5m). 

Mervyn Lim, deputy group chief executive officer (corporate services) and group chief financial officer, SingPost, said, “We are realizing the potential of our transformation into the global e-commerce logistics space with more scale and synergies from integration. Our transformation is showing in our financial results, which reflect how SingPost is on a new growth trajectory.

“The investments we made in the last few years are driving up both top and bottom line growth, with group revenue up 24% and net profit 18%. With the integration of these acquisitions into existing operations, we can expect further synergies and expansion of our e-commerce business as we provide retail brands with easy one-stop access to e-commerce markets in the USA, Europe, China and the rest of the Asia-Pacific region.” 

E-commerce-related revenues rose 53% and made up 33.4% of group revenue, up from 27.1% the previous year. SingPost’s expansion beyond a traditional domestic mail business into the fast-growing global e-commerce logistics space is showing up in the geographical makeup of its revenue streams. Overseas revenues increased to 41.9% of group revenue in the first nine months, from 31% in the corresponding period last year. 

Marcelo Wesseler, CEO of SP eCommerce, added, “Our transformation into a global end-to-end e-commerce logistics enabler is taking shape. Last month, we launched SP eCommerce, a global omni-channel commerce and fulfillment platform that integrates leading US-based e-commerce providers TradeGlobal Holdings, which we acquired recently, and Jagged Peak. SingPost now processes US$3bn of merchandise every year. We do this through more than 50 distribution centers across over 18 countries that include major e-commerce markets in the USA, Europe, China and the rest of the Asia-Pacific.”

February 4, 2016

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Helen has worked for UKi Media & Events for nearly a decade. She joined the company as assistant editor on Passenger Terminal World and since progressed to become editor of five publications, covering everything from aviation, logistics and e-commerce to meteorology. She has a love for travel and property and has redeveloped three houses in three years. When she’s not editing magazines, she’s running around after her two boys and their partner in crime, Pete the pug.

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