Singapore Post Limited provides postal, e-commerce logistics, and retail services in Singapore and internationally. The company operates through three segments: Postal, Logistics, and eCommerce. The Postal segment offers services for collecting, sorting, transporting, and distributing domestic and international mail, as well as sells philatelic products. Its international mail service includes handling of incoming and outgoing international mail. This segment also provides ePost hybrid mail services, which integrate electronic data communication with traditional mail; and agency services and financial services. The Logistics segment offers a range of logistics solutions, including freight, w...
10 Eunos Road 8
Singapore Post Centre
Founded in 1819
Singapore Post Limited Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended December 31, 2017; Provides Capital Expenditure Guidance for the Fiscal Year 2017-2018
Feb 2 18
Singapore Post Limited reported unaudited consolidated earnings results for the third quarter and nine months ended December 31, 2017. For the quarter, the company reported revenue of SGD 412,789,000 against SGD 369,388,000 a year ago. Operating profit was SGD 46,143,000 against SGD 37,296,000 a year ago. Profit before income tax was SGD 44,932,000 against SGD 39,538,000 a year ago. Net profit attributable to equity holders of the company was SGD 43,011,000 or 1.73 cents per basic and diluted share against SGD 31,354,000 or 1.28 cents per basic and diluted share a year ago. The net profit driven by improved performance in the Postal, eCommerce and Property divisions, as well as a SGD 6.9 million one-off adjustment of deferred tax arising from changes in the US corporate tax rate. Underlying net profit was SGD 35,159,000 against SGD 31,411,000 a year ago. Net cash provided by operating activities was SGD 95,979,000 against SGD 52,592,000 a year ago. Additions to property, plant and equipment, investment properties and intangible assets were SGD 14,006,000 against SGD 52,457,000 a year ago. Excluding exceptional items, underlying net profit rose 11.9%, driven by improved performance from Postal, eCommerce and Property. Group revenue rose 11.7%, led by growth across all 3 segments, driven by higher eCommerce-related activities. Underlying net profit rose 11.9% largely due to: higher operating profit from Postal, narrowed operating losses in eCommerce and improved contribution from Property.
For the nine months, the company reported revenue of SGD 1,121,598,000 against SGD 1,024,493,000 a year ago. Operating profit was SGD 117,941,000 against SGD 124,808,000 a year ago. Profit before income tax was SGD 114,779,000 against SGD 127,503,000 a year ago. Net profit attributable to equity holders of the company was SGD 102,454,000 or 4.02 cents per basic and diluted share against SGD 98,649,000 or 4.04 cents per basic and diluted share a year ago. Underlying net profit was SGD 89,685,000 against SGD 94,244,000 a year ago. Free cash flow improved to SGD 93.6 million, from negative SGD 11.6 million in the corresponding period last year. This was because of lower capital expenditure, following the completion of the Regional eCommerce Logistics Hub and SingPost Centre retail mall. Net cash provided by operating activities was SGD 146,484,000 against SGD 152,477,000 a year ago. Additions to property, plant and equipment, investment properties and intangible assets were SGD 52,878,000 against SGD 164,106,000 a year ago. Group revenue rose 9.5% with growth across the Postal, Logistics and eCommerce segments. Underlying net profit declined 4.8% largely due to lower operating profit in the Logistics segment. Capital expenditure was lower with the completion of the Regional eCommerce Logistics Hub and SingPost Centre retail mall.
Capital expenditure for fiscal year 2017-2018 is expected to be lower than fiscal year 2016-2017, as the majority of development projects had been completed. With lower capital expenditure, free cash flow is expected to improve in fiscal year 2017-2018.