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