Singapore Post (S08) H2 2024 earnings summary

Executive summary

• FY2023/24 net profit attributable to equity holders rose 217.4% YoY to S$78.3m; underlying net profit increased 28.1% to S$41.5m, with a S$36.8m exceptional gain, mainly from property revaluation.

• Overseas logistics contributed more than 85% of total revenue and operating profit; Australia expansion and improved core operations were offset by weaker freight forwarding.

• Strategic review set a three-year reset: reorganise into Singapore, Australia and International units, manage capital actively, and pursue growth in eCommerce logistics.

Financial highlights

• Revenue fell 9.9% YoY to S$1,686.7m; operating profit declined 8.8% to S$84.9m.

• Profit after tax increased 110.2% to S$81.5m; net profit attributable to equity holders was S$78.3m versus S$24.7m.

• Excluding exceptional items, underlying net profit rose 28.1% to S$41.5m; exceptional items were S$36.8m, largely a S$38.4m investment-property fair value gain.

• H2 revenue was S$859.5m versus S$913.4m YoY, while operating profit increased to S$53.5m from S$51.8m.

• Operating cash flow was S$93.4m versus S$115.7m; free cash flow fell to S$38.2m from S$87.2m.

Outlook and guidance

• Five strategic thrusts will guide the next three years; financial segment reporting will shift to Singapore, Australia, International and Corporate from FY2024/25.

• Singapore priorities include eCommerce growth, customer acquisition and post-office network optimisation while maintaining service standards.

• Australia plans to integrate FMH, Border Express and Couriers Please into one national B2B2C logistics business, targeting service, efficiency and revenue synergies.

• International will expand cross-border eCommerce offerings, develop its 4PL platform and pursue strategic partnerships; sea freight forwarding remains challenging amid Middle East uncertainty.

• Non-core asset monetisation is under consideration to manage gearing and recycle capital into growth initiatives.