Singapore Post (S08) H2 2025 earnings summary

Executive summary

• Completed divestment of the Australian business (SPAI), generating a gain of S$302.1 million and prompting a strategic reset and board transition.

• Net profit for FY24/25 reached S$245.1 million, driven by the SPAI divestment gain, while underlying net profit declined 40.3% year-over-year to S$24.8 million due to challenging global logistics conditions.

• Organizational structure was recalibrated, duplicate functions removed, and international cross-border business reintegrated into Singapore postal and logistics to drive synergies.

• Post Office Network remains loss-making, with ongoing engagement with the government for a sustainable model.

• Board reviewed international business and is conducting a strategy reset, with three new directors appointed.

Financial highlights

• Full-year revenue fell 7.5% year-over-year to S$813.7 million, mainly due to an 11.2% decline in the international segment.

• Operating profit increased 30.8% year-over-year to S$44.3 million, despite lower revenue, supported by the SPAI divestment gain.

• After-tax profit reached S$245.1 million, with a net exceptional gain of S$222.2 million from the SPAI sale and property revaluation, partially offset by impairment charges.

• Underlying net profit for the year was S$24.8 million, down 40.3% year-over-year, and the second half recorded an underlying net loss of S$0.5 million.

• Dividend per share for the year is 9.34 cents, including a proposed special dividend of 9 cents per share (S$202.5 million).

Outlook and guidance

• Persistent global trade tensions and geopolitical risks are expected to continue disrupting logistics and cross-border business into FY25/26.

• Focus remains on streamlining operations, core business, and investment in automation, with S$30 million allocated to expand parcel processing capacity by mid-2026.

• Cost savings from restructuring are expected to materialize in the new financial year.

• Continued engagement with authorities to ensure postal service sustainability and ongoing review of group strategy.