SingPost records 3% fall in 1Q earnings to $38m

SingPost said group earnings declined 2.9% to $38.1 million in the first quarter, as it continued to invest in resources for future growth and came under the pressure of the declining high-margin domestic mail business.

Excluding one-off items, underlying net profit was $36.6 million, a decrease of 2.2% from the same quarter last year.

Revenue grew 6.5% to$151.6 million in the first quarter of FY2012/13, driven by improved performances by the business segments. Growth in revenue outside of domestic mail was able to offset the decline in domestic mail contributions.

• Mail revenue increased 3.7% to$100.9 million as growth in international mail and first-time consolidation of Novation Solutions offset the decline in domestic mail contributions.
• Logistics revenue continued to grow with the Group’s e-fulfilment focus in Singapore and the region. Revenue was up 11.5% to$57.1 million, on the back of higher contributions from e-fulfilment activities in Quantium Solutions and Speedpost.
• In Retail, revenue increased 12.4% to$18.6 million with continued growth in financial services and online store Clout Shoppe.

Rental and property-related income declined by 3.1% to$10.3 million with lower rental income.

Total expenses for the group amounted to$118.9 million, an increase of 8.8%.

Cashflow generation was strong, with net cash from operating activities of $51.3 million in Q1 FY2012/13 compared to $33.8 million in the same 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 Aug 31.