The higher profit, which also includes the impact of the depreciation of the Australian dollar (AUD) and Chinese renminbi (RMB), was due to the group’s Australia business along with the continued recovery in the international parcel and post’s (IPP) cross-border e-commerce logistics business. The gains were mitigated by the declines in the freight-forwarding and domestic postal businesses.

On a constant currency basis, the group’s operating performance for its Australia and IPP business would have seen operating profit up by 40% y-o-y.

Group revenue fell by 15% y-o-y to $404.1 million due to the lower revenues in the IPP and domestic post & parcel (DPP) businesses as well as Famous Holdings. This was mitigated by the higher revenue from SingPost’s Australia business.

The IPP business saw revenue fall on a y-o-y basis due to the lower RMB although profitability and margins improved “significantly” as conveyance costs continued to fall. As a result, the IPP business reversed into profitability from the loss in the same period the year before.

DPP’s revenue fell as volumes of letters & printed papers and e-commerce deliveries continued to decline down by 5.3% y-o-y, although volumes from new customer acquisitions helped to mitigate the normalisation of e-commerce volumes in the market after the pandemic.

See also: <a class='gtm_see_also_1_inread' style='text-decoration: underline;' href='/capital/results/ihh-healthcare-doubles-earnings-rm5321-mil-3qfy2023?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>IHH Healthcare doubles earnings to RM532.1 mil for 3QFY2023</a>

The group notes that the domestic postal business has been undergoing a “structural decline” and continued to report an operating loss in the 1QFY2023/2024 due to high operating overheads, particularly in its post office network. That said, it “remains focused on driving e-commerce volumes onto the delivery network and continues to manage costs prudently”.

"The structural decline in postal services continued to impact revenue and profitability. The commercial viability of the domestic postal service is currently being addressed and the group is seeking approval from Infocomm Media Development Authority (IMDA) for postage rate increases in the immediate term to reflect the true cost of the letter mail business,” says SingPost.

The group, on July 6, said that it will work with the IMDA to review its costs and operating model in a bid to ensure long-term sustainability of the domestic postal service.

See also: <a class='gtm_see_also_2_inread' style='text-decoration: underline;' href='/capital/results/kimly-earnings-72-y-o-y-365-mil-fy2023-confectionery-business-disposal?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>Kimly earnings up 7.2% y-o-y to $36.5 mil for FY2023 from confectionery business disposal</a>

SingPost’s operating profit from its property business stood “relatively stable” as overall occupancy at SingPost Centre remained unchanged at 98.2% q-o-q.

As at June 30, cash and cash equivalents stood at $483.3 million.

As at 9.23am, shares in SingPost are trading 1 cent higher or 2.06% up at 49.5 cents.

SingPost reports 1QFY2024 group operating profit of $11.9 mil, 11.8% higher y-o-y

US stock faithful ride US$7 trillion rally as market timing backfires

Qarbotech named winner of inaugural EQT Impact Challenge

MSCI boss warns of climate risks

Keppel to acquire 50% stake in European asset manager Aermont Capital for up to $517 mil

Local banks 'resilient' in 2023, but MAS warns of deteriorating asset quality, climate transition risks

SingPost reports 1QFY2024 group operating profit of $11.9 mil, 11.8% higher y-o-y

Related News

Highlights

US stock faithful ride US$7 trillion rally as market timing backfires

Related News

Silverlake Axis earnings down 15% y-o-y in 1QFY2024; recurring revenue stays strong

Civmec posts 1QFY2024 profit of A$15.2 mil, up 7.3% y-o-y

Grand Banks Yachts reports 158.0% y-o-y surge in 1QFY2024 NPAT of $2.8 mil