Profit falls and revenue rises amid SingPost transformation

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Singapore Post’s (SingPost) third quarter results told a mixed tale of rises and falls.

Revenue was up 16.8% to S$369.4m (US$260.7m) when including SingPost’s US e-commerce subsidiaries, but net profit attributable to equity holders sunk by 27.9% to S$31.4m (US$22.2) and underlying net profit was down 28.5%. This was due to operating losses in the US e-commerce business, regional e-commerce logistics hub costs, and a decline in domestic mail volumes.

Mervyn Lim, covering group CEO of SingPost, said, “We are building out our capabilities, broadening and deepening our e-commerce logistics network to secure the future of SingPost.

“There are challenges along the journey and it is going to take a number of years for our investments to contribute.”

Due to the poor performance of Cincinnati-based TradeGlobal, which SingPost acquired in October 2015, the board of the latter will be conducting a review of all investments made by SingPost.

TradeGlobal has not achieved the underlying profit assumptions of the business plan that supported the investment, instead incurring a significant loss that is expected to determine the outcome for the full year. The business is being restructured to improve its performance.

Written by Kirstie Pickering

February 14, 2017

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Kirstie joined the team in early 2017 and brings writing, communications and client experience with her. Now an assistant editor, she produces content for our magazines and websites. Away from the office, you will find her blogging on her lifestyle website or searching the internet for photos of sausage dogs.

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