SingPost has reported an operating profit of $3.4 million for its 1QFY2026 ended June, down 60% y-o-y. Revenue in the same period was down 23.8% to $162.3 million, due to "significant" reduction in international deliveries, says the company in its business update.
Domestic delivery including mail and ecommerce related items were down 9.9% y-o-y to 85.5 million items; international delivery, suffered a bigger drop, down 59.3% to 1.12 million kg, due partly to competitive pressure.
Its property leasing revenue, meanwhile, was "stable". Occupancy and SingPost Centre, its key property asset, remained "healthy".
"The property assets business, including SingPost Centre, is expected to remain stable," the company says.
Separately, according to a report by Chinese daily Lianhe Zaobao on Aug 5, Teo Kiang Ang, chairman of Union Gas, had reportedly bought a portfolio of 10 shophouses now used by SingPost as post offices for $55.5 million.
"A preferred bid for the sale of the 10 shophouses has been identified, and the transaction is subject to the necessary approvals before completion," reiterates SingPost on Aug 22.
See also: SATS earnings up 9.1% y-o-y to $70.9 mil for 1QFY2025
Despite paying special dividends of some $202.5 million from the divestment proceeds of its former Australia logistics unit, its net cash as at June 30, was $378.5 million, up 9.1%.
This was because during the period, SingPost unwound Quantium Solutions International’s (QSI) minority cross-holdings with Alibaba, resulting in the sale of QSI’s 17.6% stake in Shenzhen 4PX to Cainiao and the cessation of Alibaba’s holdings in QSI.
In its Aug 22 update, SingPost reiterates that its series of recent divestments are a "pivotal step" in reshaping itself into a "leaner and more focused" business.
"With a streamlined structure and resources concentrated on its postal & logistics business, and property, SingPost is better positioned to drive operational efficiency, grow and create sustainable value for stakeholders over the long term," the company says.
"The group will continue to take an active approach to prioritise yield enhancement and operational efficiency of all assets."
SingPost shares closed at 50 cents on Aug 21, unchanged for the day but down 7.41% year to date. SingPost shares reached a recent high of 66 cents on July 23, ahead of the 9-cent per special dividend payout.
