Singapore Post - UOB Kay Hian 2025-03-10: Soft 9MFY25 Results As Rising Costs Hurt Margins

• 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.
• - Read this at SGinvestors.io -

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.
• - Read this at SGinvestors.io -

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.

• Read more at SGinvestors.io.

Llelleythan Tan UOB Kay Hian Research | https://research.uobkayhian.com/ 2025-03-10 SGinvestors.io

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