SingPost’s first-half net profit rises 183.7% to S$55.9 million on HDB shophouse sale and leaseback
Excluding one-off gains, SingPost’s underlying net profit more than doubled to S$11.5 million, despite a decline in revenue.
The exterior of SingPost’s Regional eCommerce Logistics Hub in Tampines, where its new automated parcel sortation facility is located, on Jun 4, 2026. (File photo: CNA/Wallace Woon)
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SINGAPORE: Singapore Post’s (SingPost) net profit for the first half of its financial year rose by 183.7 per cent year-on-year to S$55.9 million (US$43.7 million), the national postal company said on Friday (Nov 6).
The increase was largely driven by one-off exceptional gains from the sale and leaseback of 10 Housing and Development Board (HDB) post office shophouses, SingPost said in its results announcement for the six months ended Sep 30.
Revenue fell 1.3 per cent to S$185.9 million year-on-year, largely due to lower international revenues.
Although cross-border parcel volume rose 9.1 per cent, SingPost said overall international logistics revenue fell 28.6 per cent due to structural declines in cross-border letter mail.
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Meanwhile, domestic postage adjustments and a 23.8 per cent rise in domestic parcel deliveries partially offset the impact of lower letter mail volumes.
Excluding exceptional items, SingPost’s underlying net profit rose by 107.5 per cent year-on-year to S$11.5 million.
“This was underpinned by operational optimisation, better performance in domestic parcel delivery and the Post Office Network, in spite of the structural decline in letter mail,” said the company, adding that a tax provision write-back also added to its underlying net profit.
“Our results reflect green shoots in the execution of our strategy. However, the operating environment continues to be challenging,” said SingPost chief executive officer Mark Chong.
“Amid structural letter mail declines and cross-border headwinds, maintaining operational discipline is key.”
SEGMENTS
SingPost’s logistics and letters segment saw domestic parcel volumes increase by 23.8 per cent year-on-year, helping to mitigate a 15.6 per cent decline in domestic letter mail volumes.
The segment also continued a “multi-year transition towards an improved operating model” aimed at lowering costs, said the company. It added that disciplined cost management narrowed its operating loss to S$2.5 million.
SingPost said that its digital postage stamps – introduced as the first of its kind in Asia – and the islandwide rollout of SingPost@MyBlock drop-off points have also improved customer convenience and access.
In addition, its Post Office Network segment also lowered its operating loss by 42.9 per cent to S$3.3 million while revenue rose 80.8 per cent to S$10.4 million.
The company attributed the segment’s growth to retail partnerships, commercial product sales, higher rental contributions and support for the Singtel Special Discounted Shares (SDS) transfer exercise, which allows shareholders to sell their shares at SingPost branches.
SingPost is targeting a network of 30 post office branches and 50 self-service lobbies by the end of March 2027 to support long-term commercial viability.
It has also introduced retail partnerships across 11 branches since July and expects to grow this presence to 30 branches over the next six months.
Meanwhile, its property assets segment generated an operating profit of S$22.6 million on revenue of S$40.9 million, supported by full occupancy at SingPost Centre, the company said.
It added that blended rental rate reversions – the percentage increase or decrease in rental rates when existing leases are renewed or new leases are signed – at SingPost Centre reached 7 per cent.
SingPost is also planning a targeted asset refresh of the SingPost Centre retail mall, with an estimated capital expenditure of less than S$30 million, it said.
SingPost’s cash holdings stood at S$642.5 million as at Sep 30.
Its board declared an interim dividend of 0.15 Singapore cents per ordinary share for the first half of FY2026/27.
“Looking ahead, SingPost expects the operating landscape to remain challenging amid structural declines in letter mail, cross-border headwinds, and macroeconomic uncertainty,” said SingPost.
“Nevertheless, SingPost continues to actively execute its strategy for sustainable growth – strengthening core fundamentals, building new scalable capabilities, and capturing growth opportunities.”
Source: CNA/dy(bg)
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