SingPost's first-half net profit surged 66% to S$22.2 million, driven by strong growth in Australia and Singapore operations.
KEY POINTS
IN SIMPLE TERMS
SingPost, Singapore's postal company, made much more money in the first half of 2024 than it did the year before. This happened because their businesses in Australia and Singapore grew a lot, and they also earn money from renting out space in their buildings.
WHY IT MATTERS
WHERE DO YOU STAND?
Should SingPost prioritise fixing its struggling international cross-border delivery business, or continue investing in its booming Australia operations?
👍 👎 Vote ↓SingPost shows strong financial growth despite market challenges, with significant increases in revenue and profit.
According to SingPost, the company’s financial results for the first half of the fiscal year ending 30 September 2024 show impressive growth.
SingPost’s net profit jumped 65.5% to S$22.2M.
The Group’s revenue grew by 20% to S$992.4M.
These results were announced on 6 November 2024.
Vincent Phang, Group CEO of SingPost, said, “Our first-half results demonstrate the resilience across our businesses, despite the challenging market conditions.”
He added, “We are focused on executing our strategic initiatives to maximise shareholder value.”
SingPost’s Australia business saw the biggest growth.
Its revenue increased by 44.1% to S$574.9 million.
This growth was due to buying Border Express in March 2024.
The Singapore postal and logistics business also did well.
Its revenue went up by 12.4% to S$129.6 million.
This increase was mainly because of higher postage rates from October 2023.
However, the International cross-border delivery business faced some problems.
Its revenue fell by 26.8% to S$117.9 million.
| Business Segment | Revenue Change | New Revenue |
|---|---|---|
| Australia | +44.1% | S$574.9 million |
| Singapore Postal and Logistics | +12.4% | S$129.6 million |
| International Cross-border Delivery | -26.8% | S$117.9 million |
SingPost’s property business also did well.
The property leasing segment’s revenue grew by 13.2% to S$43.0 million.
Its operating profit went up by 11.7% to S$23.9 million.
The SingPost Centre had a high occupancy rate of 98.2% as of 30 September 2024.
This is better than the 96.2% rate on 31 March 2024.
The Board of Directors declared an interim dividend of 0.34 cents per ordinary share.
This dividend is tax-free.
It represents 30% of the underlying net profit for the first half.
Compared to last year, this dividend is 89% higher.
SingPost is working on a new operating model for its postal services.
They are talking with authorities to make sure postal services can last for a long time.
The company faces some challenges in its international business.
But its strong performance in Australia and Singapore shows it can handle tough market conditions.
SingPost’s success in property leasing also helps balance its overall business.
The high occupancy rate at SingPost Centre is good news for the company’s income.
This diversified approach helps SingPost manage risks in different parts of its business.
Do you think SingPost 2024 first half net profit growth will lead to better postal services for customers in Singapore?
Should SingPost prioritise fixing its struggling international cross-border delivery business, or continue investing in its booming Australia operations?
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