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SingPost reports 188.1% y-o-y surge in 2HFY2022 earnings of $48.1 mil

Felicia Tan
Felicia Tan5/13/2022 8:45 AM GMT+08  • 4 min read
SingPost reports 188.1% y-o-y surge in 2HFY2022 earnings of $48.1 mil
A parcel from SingPost. Photo: The Edge Singapore
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Singapore Post (SingPost) has reported earnings of $48.1 million for the 2HFY2022, a 188.1% surge from earnings of $16.7 million in the same period the year before.

This brings earnings for the FY2022 to $83.1 million, 74.5% higher than FY2021’s earnings of $47.6 million.

Earnings per share (EPS) for the 2HFY2022 stood 4.5 times higher at 1.86 cents from the previous year’s 0.41 cents. EPS for the FY2022 increased by 2.12 times to 3.09 cents from 1.46 cents in the FY2021.

2HFY2022 revenue increased by 34% y-o-y to $934.2 million due to a surge in revenue from the logistics segment, which includes Freight Management Holdings (FMH). The group acquired a majority interest in FMH in November 2021. The surge in the logistics revenue was offset by the lower revenue from the post and parcel segment.

In the logistics segment, revenue for the 2HFY2022 surged 90.3% y-o-y mainly driven by strong international freight forwarding volume growth and the first-time consolidation of FMH with effect from December 2021. According to the group, FMH has performed well since its acquisition of its majority stake.

See also: ThaiBev reports 20% higher earnings of $285.4 mil for 2QFY2022

In the same segment, Famous Holdings logged revenue growth of 74.8% y-o-y thanks to higher sea freight volume and rates on the back of global supply chain logistics disruptions.

CouriersPlease in Australia saw revenue increase by 1.6% y-o-y in the 2HFY2022, but incurred higher costs due to Covid-19 related disruptions, as well as extreme weather events in eastern Australia.

2HFY2022 revenue for the post and parcel segment fell 15.0% y-o-y due to the continued impact of Covid-19 on air freight capacity.

In domestic post and parcel, revenue was largely stable in the 2HFY2022 as eCommerce logistics volume grew by 19% y-o-y in the 2HFY2022, which largely offset the continued decline in volumes of letters and printed papers.

See also: ComfortDelGro reports 30.4% higher 1QFY2022 PATMI of $76.7 mil

Property revenue fell 8.2% y-o-y in the 2HFY2022 due to the divestment of the self-storage business GSC in December 2021.

Group operating profit increased by 54.2% y-o-y to $61.0 million in the 2HFY2022 mainly due to higher contributions from the logistics segment and lower corporate overhead expenses, and despite the absence of the jobs support schemes (JSS) from the government.

Share of profit of associated companies and joint venture surged 214.3% y-o-y in the 2HFY2022 to $2.1 million.

Exceptional items stood at $4.2 million in the 2HFY2022, compared to the loss of $12.0 million in the 2HFY2021.

Interest income and investment income increased to $2.1 million in the 2HFY2022 from $195,000 before.

Profit before tax for the 2HFY2022 stood 174.3% up y-o-y at $61.7 million.

For the FY2022, revenue increased by 18.6% y-o-y to $1.67 billion, led by the increase in logistics revenue.

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Operating profit for the FY2022 was up by 41.3% y-o-y to $112.1 million.

FY2022 share of profit of associated companies and joint venture surged 4.9 times to $4.8 million from $989,000 in the FY2021.

Exceptional items stood at $1.9 million in the FY2022 from the loss of $12.5 million before.

Profit before tax stood 78.1% higher y-o-y at $107.4 million.

“We continue to see recovery for the second half of the year, as many parts of the world have now relaxed pandemic restrictions and embrace an endemic Covid-19. Our investment in FMH has contributed significantly to the group’s revenue. As we continue to integrate our operations and build end-to-end capabilities, this positions us well in the Australia logistics market,” says SingPost CEO Vincent Phang.

“We launched our group’s purpose earlier this year – Making Every Delivery Count for People and Planet. This will guide us in our key priorities, including simplifying the way we do business, streamlining our operations, optimising capital management, and embedding sustainability in all that we do,” he adds.

SingPost has proposed a final dividend of 1.3 cents per share for the 2HFY2022, bringing the annual dividend to 1.8 cents per share.

As at end-March, cash and cash equivalents stood at $280.4 million.

Shares in SingPost closed 2 cents lower or 2.80% down at 69.5 cents on May 12.

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