Singapore Post just announced a whopping full-year net profit of S$245.1 million (US$188 million) for the financial year ending on Mar 31. This number is more than double compared to last year’s figures, with the company attributing this success to an “exceptional gain” from the sale of its Australia business. SingPost shared this information in a media release on Thursday, May 15, highlighting a net exceptional gain of S$222.2 million for the year. The gain included a profit from the disposal of SingPost Australia Investments amounting to S$302.1 million and a fair value gain on properties of S$15.2 million, offset slightly by impairment charges of S$79.6 million mainly for Quantium Solutions.
The decision to sell the Australian business, Freight Management Holdings (FMH), was made public in December 2024, with the company entrusting the sale to private equity firm Pacific Equity Partners. The anticipated gain from the sale was estimated to be S$312.1 million, as stated in a Singapore Exchange filing at the time. SingPost revealed that the proceeds from this sale have been used to reduce debt, provide returns to shareholders, strengthen the company’s financial position, and support future growth opportunities. Additionally, the board proposed a special dividend of S$202.5 million at 9 cents per ordinary share, pending shareholder approval at the 33rd Annual General Meeting, with payment and record dates to be confirmed later.
Despite the impressive net profit figures, SingPost experienced a decline in underlying net profit of over 40% to S$24.8 million for the financial year when excluding the exceptional gain. The company even reported a net loss of S$0.5 million in the second half of the year, a stark contrast to the S$28.1 million profit during the same period in the previous year. SingPost attributed this downturn to the increasingly challenging and uncertain conditions in the global logistics landscape, emphasizing the impact of these conditions on their operations. The full-year revenue of S$813.7 million saw a 7.5% year-on-year decrease, primarily affected by difficulties in the international segment, which saw a revenue drop of 11.2% to S$494.3 million. The Singapore segment, on the other hand, experienced a modest revenue increase of 2.9% to S$326.7 million, driven by the property business’s strong revenue growth of 11.9% to S$86.9 million.
Looking ahead, SingPost acknowledged the challenging global economic outlook, marked by trade tensions and disrupted international trade flows. The company anticipates these conditions to persist in the upcoming financial year, prompting them to refocus on their core business activities post the divestment of the Australia business. Efforts are underway to enhance operational efficiencies and streamline operations to address cost concerns. The ongoing strategic review aims to position SingPost for sustainable growth and profitability in the dynamic market landscape.
