SingPost revenue grows 24%+ on back of digital initiative
By Digital News Asia February 8, 2016
- Net profit in first nine-months up 17.6% to S$143.5mil
- 53% YoY growth in e-commerce-related revenue, now 33.4% of group revenue
SINGAPORE Post Ltd (SingPost) said that revenue for the first nine months of the financial year ended Dec 31 2015 grew 24.3% to S$834 million. [S$1 = US$0.71]
In a statement, the company attributed the strong revenue growth to its continuing expansion into e-commerce and logistics activities, as well as contributions from new subsidiaries.
Operating profit improved 18.5% to S$176.8 million due to strong growth in logistics and e-commerce-driven international mail as well as one-off gains from divestments.
These improvements came during the peak season and arose out of increases in scale and synergies from post-merger integration of new subsidiaries, SingPost said.
Net profit was up 17.6% to S$143.5 million.
These figures bear out the group’s transformation into a global e-commerce logistics company, which was achieved while growing underlying net profit, up 1.2% to S$121.8 million, the company said.
“We are realising the potential of our transformation into the global e-commerce logistics space with more scale and synergies from integration,” said deputy group chief executive officer (Corporate Services) and group chief financial officer Mervyn Lim.
“Our transformation is showing in our financial results, which reflect how SingPost is on a new growth trajectory.
“The investments we made in the last few years are driving up both top and bottom line growth,” he added.
SingPost said its e-commerce-related revenues rose 53% and made up 33.4% of revenue, up from 27.1% the previous year.
Its expansion beyond a traditional domestic mail business into the fast-growing global e-commerce logistics space is showing up in the geographical makeup of its revenue streams, the company said.
Overseas revenues increased to 41.9% of group revenue in the first nine months, from 31% in the corresponding period last year.
Revenue from its logistics operations increased 39.5% to S$458.4 million on the back of growing contributions from e-commerce logistics activities and the inclusion of revenues of new subsidiaries.
Operating profit was up 57.6%, reflecting SingPost’s increasing participation in the e-commerce market and higher margins on improved operating efficiency and synergies from post-merger integration.
Over the past nine months, the integration of Quantium Solutions and CouriersPlease, as well as SingPost’s partnerships, boosted the company’s e-commerce logistics capabilities in the region, I added.
Retail and e-commerce revenue rose 50.8% to S$102.6 million due mainly to higher e-commerce growth and the inclusion of new US subsidiary TradeGlobal’s revenue from Nov 14, 2015 of S$29.4 million.
Operating profit declined on lower contributions from financial services and continued investments in e-commerce infrastructure and capabilities, SingPost said.
“Our transformation into a global end-to-end e-commerce logistics enabler is taking shape,” said SP Commerce chief executive officer Marcelo Wesseler (pic).
“Last month, we launched SP Commerce, a global omni-channel commerce and fulfilment platform that integrates leading US-based eCommerce providers TradeGlobal Holdings, which we acquired recently, and Jagged Peak.
“SingPost now processes US$3 billion of merchandise every year. We do this through more than 50 distribution centres across over 18 countries that include major e-commerce markets in the United States, Europe, China and the rest of the Asia Pacific,” he added.
With e-commerce focus, SingPost restructures
Drone delivery a milestone for SingPost, but what next?
The 6 laws of digital transformation, according to SingPost
For more technology news and the latest updates, follow us on Twitter, LinkedIn or Like us on Facebook.