In its latest earnings announcement, Singapore Post Limited (SingPost) reported a net profit of $18.4 million for its half-year ending Sept 30 (1H 2025/2026). Excluding exceptional gains, underlying net profit fell 78% y-o-y to $5.5 million from $25.2 million.
Total revenue came in at $188.4 million, declining 27.4% or $71.2 million from the previous corresponding period. The decline in revenue and net profit was attributed largely to a slump in cross-border e-commerce business, with discontinued operations also impacting net profit.
On a segmental basis, the company’s logistics and letters division declined by 33.1% or $75.9 million to $153.4 million. The division handles post and parcel related activities which encompass the collection, sortation, transportation and distribution of domestic and international mail and parcels, as well as e-commerce logistics, warehousing, fulfilment and distribution services. It suffered an operating loss of $4.4 million, in contrast to a profit of $13.7 million for 1H 2024/2025.
The division’s challenges are attributed to a 63% year-on-year decline in cross-border e-commerce delivery volumes, exacerbated by lower domestic e-commerce volume and the structural decline in letter mail.
The postal service division operated at a $5.8 million loss, on the back of $5.7 million in revenue. In an effort to keep costs down, SingPost has reduced its post offices by six to 40 locations as of Sept 30, and will continue to seek opportunities to reduce costs. This segment comprises agency services, sale of products and space rental in post offices.
The property division remained the only bright spark in the company’s earnings. SingPost Centre accounted for the bulk of the segment’s revenue and profit. Its overall occupancy was higher at 99.2% compared to 98.2% in the previous year.
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Although net profit for property decreased slightly by 3.3% to $23.9 million from $24.7 million, the top line increased by 3.3% to $40.6 million from $39.3 million. The division comprises property rental and related activities in the company’s properties, excluding those from the post office network.
SingPost CEO Mark Chong, who assumed his post on Nov 1, says that the company’s business streamlining efforts is reflected in its results. He added, "This team has delivered a positive start to the first half, despite the persistent weakness in the global logistics and e-commerce sector. We will continue to invest in our infrastructure to further enhance our service levels, while managing our cost base."
Chong added that SingPost is continuing its strategic review and will provide updates once ready to share. The potential divestment of SingPost Centre also continues to be part of the review.
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The mainboard-listed company is striving to strengthen its core business, improve operations, enlarge its network, while maintaining its disciplined approach to capital management and costs.
Due to organisational streamlining after the sale of its Australian business, cost control and in tandem with a decline in delivery volumes, operating expenses decreased by 25.5% to $182.4 million from $245 million. SingPost has streamlined its cross-border operations and initiated cost management measures to align with the reduced cross-border business activity.
On measures to strengthen its company’s core business operations, SingPost is collaborating with NTUC Cheers and Pick Lockers to broaden its network of service touchpoints to more than 2,500 in Singapore.
The company has invested $30 million in new small-parcel sorting equipment at its regional e-commerce logistics hub at Tampines. This will enable SingPost to expand e-commerce processing capacity for small parcels from around mid-2026 and potentially increase market share for domestic deliveries.
Despite the global trend of declining physical mail volumes, the postal service is still regarded as an essential service. SingPost states that it “continues to actively engage with the Singapore Government to establish a sustainable operating model for postal services”. COO Neo Su Yin added that the discussions involved maintaining service level quality and adding value to users.
SingPost has been actively divesting its various businesses over the past year. In March, SingPost completed the sale of its Australian businesses for A$1.02 billion (S$866 million). It ended its cross holdings for 4PX and Quantium Solutions with Alibaba Group around the middle of the year, as well as divesting from Famous Holdings and associated company Morning Express in July.
SingPost also reported that it is in the process of selling 10 HDB shophouses. CFO Isaac Mah shared that the company intends to operate its post offices at these locations on a leaseback basis.
