Singapore Post (S08) Q1 2025 earnings summary

Executive summary

• Group revenue increased 22.4% year-over-year to S$494.8 million, driven by strong performance in Australia and Singapore, offsetting declines in International and freight forwarding segments.

• Operating profit more than doubled, rising 105.2% year-over-year to S$24.4 million, supported by revenue growth and cost management.

• Australia benefited from the full-quarter consolidation of Border Express and the merger of CouriersPlease and FMH, enhancing logistics capabilities.

• Singapore saw improved delivery business performance, with higher eCommerce volumes and postage rates offsetting letter mail declines.

Financial highlights

• Group operating margin improved to 4.9% from 2.9% year-over-year.

• Australia revenue grew 5.3% year-over-year, with operating profit up 24.4% due to new customers and cost control.

• Singapore business returned to profitability in the quarter, reversing a prior loss.

• Property revenue increased on higher rental income, with SingPost Centre occupancy at 96.0%.

Outlook and guidance

• Strategic review of the Australia business underway, with results expected by year-end.

• Ongoing discussions with the Singapore Government on a new postal operating model to lower costs and improve service.

• International business faces ongoing challenges from air conveyance costs, post-pandemic shifts, and geopolitical factors.