SingPost Q1 operating profit tumbles 60% to S$3.4 million amid falling revenue, margin squeeze

[SINGAPORE] Singapore Post’s (SingPost) group operating profit for the first quarter ended Jun 30 came in at S$3.4 million, a 60 per cent year-on-year drop from S$8.4 million.

The decrease in operating profit comes on the back of increased market pressure and competition, said SingPost in a bourse filing on Friday (Aug 22).

Group revenue fell 23.8 per cent to S$162.3 million, compared with S$213 million in the year-ago period. The decline was largely attributed to a “significant reduction in international deliveries”.

Also contributing to the poorer showing was a drop in operating profit margin to a mere 2.1 per cent. Just last month, S&P Global Ratings downgraded SingPost’s long-term issuer credit rating to “BBB-” from “BBB”, citing its high fixed operating costs.

Group operating expenses declined 22.7 per cent from S$204.6 million to S$158.2 million following the divestment of its Australia business in March this year.

The company has yet to appoint a new chief executive officer after firing Vincent Phang last year over the mishandling of a whistle-blower complaint.

BT in your inbox

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

By segments

Lower delivery volumes meant that the domestic and international delivery business recorded lower revenue, while letter mail volume contracted due to continuing electronic substitution. Domestic and international e-commerce volume also fell.

SingPost and Alibaba agreed to unwind their respective minority cross-shareholdings in Quantium Solutions International (QSI) in April, resulting in the sale of QSI’s 17.6 per cent stake in Shenzhen 4PX to Cainiao.

The group then entered into a sale and purchase agreement for the divestment of QSI in five Asia-Pacific countries and territories to Morning Global.

Property leasing revenue, mainly comprising rental income from SingPost Centre, was stable, said the group. Overall occupancy rate at the property was 97.8 per cent as at Jun 30, 2025, compared with 96 per cent previously.

The company added that the property assets business (including SingPost Centre) is also expected to remain stable.

Earlier this month, SingPost divested 10 Housing & Development Board shophouses for S$55.5 million, after putting them up for sale and leaseback. The group said current post office services will be maintained, with the transaction still subject to the necessary approvals before completion.

The freight forwarding business recorded lower revenue amid volatility in the sea freight market. Last month, the group divested its entire freight forwarding business, Famous Holdings, for S$177.9 million.

As at end-June, the group had S$728.1 million in cash and cash equivalents, compared with S$696.4 million as at end-March.

Borrowings were flat at S$349.6 million and total equity stood at S$1.6 billion as at Jun 30, down 0.3 per cent.

Outlook

SingPost stated that it aims to become a “leaner and more focused” business, with the recent divestments in line with that plan.

The divestments have “strengthened its balance sheet, reduced debt, and enhanced its flexibility to respond to market opportunities”.

The group will now concentrate its resources on its postal and logistics business, as well as property. This will better position it to “drive operational efficiency”.

SingPost will be focusing on building market share, maximising asset utilisation and enhancing its digital capability in the domestic delivery business, it said. The group added that it will continue to take an active approach to prioritise yield enhancement and operational efficiency of all assets.

Shares of SingPost closed flat at S$0.50 on Thursday.