The national mail carrier of Singapore and budding third-party logistics provider’s full-year net profit soared 57.9 percent to $248.9 million Singapore (U.S. $ 181.45 million) thanks to one-time divestment gains.
Singapore Post Limited (SingPost) reported record profits for the fiscal year ended March 31, 2016, according to the company’s most recent financial statements.
The national mail carrier of Singapore and up-and-coming third-party logistics provider’s full-year net profit soared 57.9 percent year-over-year to $248.9 million Singapore (U.S. $ 181.45 million) thanks to one-time divestment gains. Excluding one-off items, underlying net profit slipped 4.1 percent to S$153.6 million compared with the previous fiscal year.
Revenues jumped 25.2 percent to S$1.15 billion, surpassing the S$1 billion milestone for the first time. The company attributed the growth primarily to its e-commerce related activities and acquisitions.
SingPost purchased two U.S. e-commerce logistics solutions providers in less than a month last October, acquiring a 96.3 percent share in TradeGlobal Holdings, Inc. for $168.6 million and a 71.1 percent share in Tampa, Fla.-based Jagged Peak, Inc. for approximately $15.8 million. The company said at the time the acquisitions would complement SingPost’s existing service network to create a “one-stop global solution” for customers.
E-commerce related revenues increased 60.4 percent year-over-year to S$412.4 million for the fiscal 2015/16 year, representing 35.8 percent of group revenues. SingPost said e-commerce revenue growth was aided by increased traffic volumes and activities, including mergers and acquisitions.
In the company’s logistics unit, operating profit increased 75 percent for the fiscal year on revenues that grew 34.7 percent to S$626 million.
“SingPost embarked on a transformation journey more than ten years ago to future-proof our business and we are seeing results,” SingPost Deputy Group Chief Executive Officer, Corporate Services and Group Chief Financial Officer Mervyn Lim said. “SingPost’s solid postal foundation paved the way for the company to pioneer eCommerce logistics in this part of the world and we successfully pivoted into the U.S. with the completion of the Trade Global and Jagged Peak acquisitions in November 2015 and March 2016 respectively.”
“As a result of our transformation strategy, Group revenue crossed a significant S$1 billion milestone and our overseas revenue grew to 43.9 percent,” added Lim. “As SingPost continues its transformation and strengthens its eCommerce logistics capabilities, the Group will focus on post-merger integration and extracting synergies from the recent acquisitions.”
Listed on the Main Board of the Singapore Exchange since 2003, SingPost has a market capitalization of S$3.53 billion as of March 31, 2016.
SingPost reports record profits in fiscal 2015/16
