Singapore Post Limited (SingPost) has reported earnings of $60.9 million for the FY2026 ended March 31, 75.2% lower y-o-y, as revenue and operating profit fell.
Full-year revenue was down by 23.1% y-o-y to $376.1 million largely due to lower International revenue on the back of a volatile global macroeconomic environment and a continued decline in letter mail volumes.
Reveue for SingPost’s logistics & letters segment fell by 28.3% y-o-y to $303.5 million as domestic and international revenue declined from lower volumes.
Revenue from the post office network also fell by 11.3% y-o-y to $11.2 million due to lower revenue from agency services and partly mitigated by higher rental income from the group’s post office properties. The number of post offices as at end-March fell to 40, down from 43 a year ago.
Revenue for property assets was the only bright spot, with a 2% y-o-y increase to $80.7 million, due to positive rental reversions.
Operating profit fell by 68.9% y-o-y mainly from the lower International volumes.
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The group’s bottom line, however, was boosted by $19.2 million in exceptional items and the $38.1 million derecognition of aged trade payables. The exceptional items were mainly from large fair value gains on investment properties of $15.5 million, gain on disposal of subsidiaries of $4.6 million but offset by others such as the loss on disposal of property, plant and equipment and related expenses from mergers and acquisitions.
The derecognition was due to international settlements to overseas postal administrators for international deliveries. According to SingPost, trade aged payables exceeding a seven-year threshold — which is based on a six-year statutory limitation plus a one-year trade cycle — are derecognised following an annual formal notification process to overseas postal administrators. As such, aged trade payables made before Jan 1, 2019, were derecognised in FY2025/FY2026.
In its strategy update, the group says it will now keep SingPost Centre — previously identified as a non-core asset and once considered for sale — as it is a “crucial” part of the group’s portfolio and a “strategic asset” that generates steady income and cashflow with high occupancy.
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The group has identified other opportunities including diversifying beyond e-commerce to unlock new revenue streams under its logistics & letters segment.
“Our results for the year reflect a consolidated baseline from which we will now strengthen and scale our business. Our strategy outlines our roadmap to navigate evolving market dynamics and drive long-term shareholder value,” say Mark Chong, CEO of SingPost.
“By investing in technology and automation; focusing on asset enhancement in our property portfolio and working towards financial sustainability in our business, we are fortifying the core of SingPost while expanding purposefully into new logistics services”.
The group has recommended a final dividend of 0.06 cents per share for the year, along with a supplemental dividend of 0.41 cents per share from the derecognition of aged trade payables.
As at March 31, cash and cash equivalents stood at $534.4 million.
SingPost's shares opened 0.5 cents lower or 1.33% down at 37 cents on May 14.
