SingPost Group's unaudited results
for the second quarter and half year ended 30 September 2011
SingPost records Q2 net profit of S$30.6M- Dividend remains at 1.25cts per share
Singapore, 28 October 2011 - Singapore Post Limited ("SingPost") today announced its unaudited results for the second quarter and half year ended 30 September 2011. Below are some highlights:FINANCIAL HIGHLIGHTS
GROUP RESULTS
Revenue
Rental & Property- Related Income
Total Expenses
Net Profit
Underlying Net
Profit
Net Cash from
Operating Activities
Earnings per Share
Steady business performance as Group invests for future growth
• Higher revenues but lower profits from higher operating costs and investments in growth
SingPost Group revenue rose 2.4% to S$140.9 million in Q2
FY2011/12, on the back of improved performances in the Mail
and Logistics segments.
Mail revenue increased 1.7% to S$93.8 million, on higher
contributions from domestic mail, and international mail. In
Logistics, revenue increased 10.8% to S$53.1 million, driven
by growth in Quantium Solution's regional e-fulfilment
activities, transhipment and vPOST shipping activities.
Retail revenue held steady at S$17.0 million, as higher
contributions from retail products and online store Clout
Shoppe offset the decline in agency services and financial
services following the sale of the SpeedCash business in
March 2011.
Rental and property-related income increased by 6.3% to
S$11.0 million with higher rental income from Singapore Post
Centre.
The Group's total expenses in Q2 FY2011/12 amounted to
S$111.8 million, an increase of
7.4%. Labour and related expenses were higher due to
increases in salaries resulting from a tight labour market as
well as investments in people, information technology and
operations to drive growth.
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The Group's net profit declined 22.5% to S$30.6 million.
Excluding one-off items, underlying net profit was S$32.8
million, a decrease of 10.1%.
Said Dr Wolfgang Baier, Group Chief Executive Officer of
SingPost: "In spite of the mounting challenges in the postal
industry, we managed to improve the performance in our core
business of Mail and Logistics in the second quarter. Net
profit for the Group was impacted by the higher cost of
business including increased manpower costs due to the tight
labour market, as well as investments to strengthen
information technology, operations and capabilities to drive
new business."
• Investing to transform SingPost
Dr Baier added: "The postal landscape is changing fast, and
worldwide, many posts are struggling. It is just not enough
to conduct business-as-usual. It is imperative that SingPost
accelerates its transformation and diversification efforts to
survive the changing postal landscape. We have to continue to
invest in information technology and capabilities to support
our growth plans."
"This will enable us to continue to fulfil and even exceed
our social obligations as
Singapore's Public Postal Licensee and enhance shareholder
value in the longer term."
"Structural changes in the postal industry, especially
e-substitution, have resulted in challenges to the Group's
business. SingPost has embarked on initiatives in digital
services such as digital mailbox and hybrid mail as well as
e-commerce and e-fulfilment."
"We have been building our logistics network in Asia Pacific
with recent investments in a number of well-run logistics
companies in the region, such as GD Express Carrier Berhad
(GDEX) and Indo Trans Logistics Corporation (ITL), to
strengthen our existing regional platform in Quantium
Solutions."
• Quarterly interim dividend remains at 1.25 cents
Net cash from operating activities was lower at S$42.6
million, compared to S$46.3 million in the second quarter of
last year.
The Board of Directors has declared an interim quarterly
dividend of 1.25 cents per ordinary share (tax exempt
one-tier) payable on 30 November 2011.
Review of First Half Performance
Group revenue rose 2.7% to S$283.2 million in the first half
with higher contributions in all business segments. Mail
revenue grew on the back of improvements in domestic mail and
international mail. In Logistics, revenue growth was driven
by Speedpost and e-fulfilment activities in Quantium
Solutions, transhipment and vPOST shipping businesses. Retail
revenue was higher as contributions from retail business and
Clout Shoppe offset the drop in revenue from agency services
and financial services.
Total expenses rose 6.7% to S$221.1 million in the first half
of FY2011/12.
The Group's net profit was S$69.9 million, a decline of
12.9%. Excluding one-off items, underlying net profit
amounted to S$69.7 million, a decline of 5.5%.
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End
About Singapore Post Limited(Reg. No. 199201623M)
Singapore Post Limited (SingPost) is a leading provider of mail, logistics and retail solutions in Singapore and the Asia Pacific region. It is the designated Public Postal Licensee (PPL) for Singapore providing domestic and international postal services as well as end-to-end mail solutions such as data printing, letter-shopping, delivery and mailroom management. As a logistics provider, SingPost offers domestic and international door-to-door delivery services, including express delivery (Speedpost) along with warehousing, fulfilment and distribution services. SingPost owns one of the largest retail distribution networks in Singapore with its extensive tri-channel network of over 60 post offices, 300- odd Self-service Automated Machines (SAM) and the online shopping and shipping portal vPOST. SingPost was listed on the Main Board of the SGX-ST on 13 May 2003. The company has won many awards and accolades. It is the only postal company in the world to have won the Express Mail Service (EMS) Cooperative Certification Gold Level Award by the Universal Postal Union for its Speedpost Worldwide Courier Service for 10 consecutive years since 2001. It was also named runners-up in the "Most Transparent Company Award 2010" for the fifth consecutive year in the SIAS Investors' Choice Awards.
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For general information on SingPost, call 1605 toll-free or visit www.singpost.comPage 3 of 3