SingPost provided a business update for 3QFY25 – Group revenue for the quarter grew 12.1% y-o-y to S$510.6m. However, this was outpaced by group operating expenses, which increased 14.1% y-o-y to S$490.4m on the back of higher inflation and supply chain disruptions.
- Read this at SGinvestors.io -
Altogether, SingPost's 9MFY25 revenue and operating profit came in at 74.7% and 66.6% of our initial full year forecast, respectively, which we deem to have missed our expectations.
The Singapore & International businesses continued to be a drag during the period…
Revenue from logistics, financial, and other services saw a y-o-y decline despite a 3.4% y-o-y rise in overall delivery volumes in the Singapore postal and logistics business; together with the high cost of operating the post office network, the business slipped back into an operating loss, as compared to an operating profit in 3QFY24.
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SingPost expects the International cross-border business to remain challenged amidst competitive pressures and an evolving regulatory landscape, particularly with the removal of the “de minimis” exemption.
Management continues to work on ensuring SingPost’s competitiveness, but does not rule out potentially refocusing on nearby markets like Asia in the near to medium term.
… offset by the Australia business & property leasing.
Read more at SGinvestors.io.
Above is an excerpt from a report by OCBC Investment Research. Clients of OCBC Securities may be the first to access the full PDF report @ https://www.iocbc.com/.
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