SingPost posted higher 9MFY25 revenue (+17.2% y-o-y) and operating profit (+22.3% y-o-y) but still fell short of our expectations. This was due to a soft 3QFY25 which saw higher revenue but weaker-than-expected operating profit, dragged by higher operating costs and a weak macroeconomic environment.
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Soft quarter below expectations.
For 9MFY25, Singapore Post (SingPost, SGX:S08) reported higher overall group revenue (+17.2% y-o-y) of S$1,503.0m and group operating profit of S$72.3m (+22.3% y-o-y), forming 73.9% and 71.8% of our full-year forecasts respectively.
Given that 3Q is SingPost’s seasonally strongest quarter, the results were below our expectations.
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Lower margins.
3QFY25 revenue was driven by growth in the Australia and property businesses, offset by the Singapore and international segments.
The sharp fall in SingPost's 3QFY25 operating profit was largely dragged by higher-than-expected operating expenses from ongoing macroeconomic pressures, inflationary cost push, supply chain disruptions and a highly competitive environment. As a result, 3QFY25 operating margins fell by 2.0ppt y-o-y to 4.1ppt.
Value-unlocking initiatives to continue.
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Above is an excerpt from a report by UOB Kay Hian Research. Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.
