Singapore Post (SingPost) has reported earnings of $30.9 million for the 1HFY2020/2021 ended September, 42.1% lower than the earnings of $53.4 million posted a year ago.
On a fully diluted basis, earnings per share (EPS) came in at 1.04 cents, compared to the 2.57 cents in FY2019/2020.
Revenue for the 1HFY2020/2021 rose 9.6% y-o-y to $707.8 million mainly contributed by growth in the Post and Parcel as well as Logistics segments with strong eCommerce volume growth across the group.
Profit on operating activities, however, fell 50.9% y-o-y to $39.8 million on higher costs incurred due to the growth in eCommerce volume.
Covid-19-related disruptions, saw the escalation of cross-border conveyance costs due to flight disruptions, contributed to the decline.
SingPost also faced higher costs due to additional health and safety arrangements for Covid-19 including temporary housing for its Malaysian employees in Singapore.
“These measures, while costly, have allowed SingPost to continue its service obligations to Singapore,” says the company in a Nov 6 statement via SGX.
Underlying net profit also came in 40% lower y-o-y to $31.5 million.
As at Sept 30, SingPost Centre retail mall and office remained at “close to full occupancy”. Contribution from the property is expected to remain “relatively stable” for the rest of the year.
The group has declared an interim dividend of 0.5 cent per ordinary share, to be paid on Nov 29.
As at Sept 30, cash and cash equivalents stood at $458.7 million.
As at 10.57am, shares in SingPost are trading 0.5 cent higher or 0.7% up at 68 cents.
