SingPost Q3 net profit up 7.3%
SingPost’s automated letter-sorting machines. It has spent S$45 million replacing sorting machines to handle a higher volume of packages. Photo: SingPost
SINGAPORE — Singapore Post (SingPost) today (Feb 4) announced a S$42.2 million net profit for the financial third quarter ended December, a 7.3 per cent gain compared to a year ago despite its struggles to maintain its core mail business.
Group revenue for the nation’s postman gained by 7.6 per cent to S$239.6 million, as its ecommerce and logistics businesses helped offset a decline in mail revenue.
Revenue from the mail segment fell 2.3 per cent, but rose 20.7 per cent in the logistics segment and 1.3 per cent in the retail and ecommerce division.
The group said it continues to face challenges in its mail business but are taking steps to improve that segment.
“Despite the declining mail business, we are investing in service quality and focusing on efficiency and productivity improvements,” said Dr Wolfgang Baier, Group Chief Executive Officer of SingPost. He cited a S$45 million investment in new integrated sorting machines that are meant to improve efficiency and accuracy in letter sorting capacity by 17 per cent and mechanisation rate to 95 per cent.
“We will (also) continue to transform our post office network into 24/7 touch-points with digital solutions for the convenience of our customers,” Dr Baier added.
The group said it will continue to explore investment opportunities in Asia Pacific as part of its growth strategy, stating continued expansion in its end-to-end ecommerce logistics solutions network in the region and investments in ecommerce logistics infrastructure, technology and capabilities.
