Singapore Post Limited has posted a loss of $9.9 million for the 1HFY2022 ended Sept 30, down from its earnings of $35.0 million in the corresponding period the year before.
The loss was attributed to the fair value charge of $21.0 million from the higher put option redemption liability on the group’s 51%-owned Freight Management Holdings (FMH) as a result of a higher valuation of the Australian company.
However, the group’s revenue for the 1HFY2022 rose 31.1% y-o-y to $958.9 million, the highest revenue recorded for the half-year period. The revenue increase was led by growth in the Logistics segment, which included the consolidation of FMH.
Operating profit fell by 19.1% y-o-y to $41.3 million due to the weaker performance in the group’s Post and Parcel segment. The Post and Parcel segment saw a decline in revenue, which was attributed to the “challenging operating environment”.
As at Sept 30, SingPost’s cash and cash equivalents stood at $435.8 million.
For the half-year period, SingPost has declared an interim dividend of 0.18 cent per share, down from the previous year’s dividend of 0.5 cent per share.
This year’s dividend will be paid on Nov 30.
“The group is evolving into a global logistics player with digitally-enabled capabilities and sustainable cost-effective solutions. We continue to execute our transformation efforts with investments made in Australia, executing our Future of Post strategy for our Domestic business, and reigniting the International business. In Australia, we are building a technology-led integrated business-to-business (B2B) and business-to-consumer (B2C) logistics business, where revenues now make up over 42% of the group’s, up from 17% a year ago,” says Vincent Phang, group CEO of SingPost.
Shares in SingPost closed 1 cent higher or 1.85% up at 55 cents on Nov 2.