The expanded collaboration aims to streamline the delivery process and enhance service efficiency, particularly for cross-border shipments

 

[SINGAPORE] Singapore Post (SingPost) has ramped up its partnership with global transport company FedEx with the extension of FedEx&rsquo s parcel drop-off services to all post offices islandwide. This raises parcel acceptance points from six to 43, the two companies said in a joint statement on Monday (May 19).

 

Customers can now drop off their FedEx parcels at all SingPost post office POPStop counters as well as POPStop@Tampines MRT. After they are dropped off, the parcels are transferred to FedEx on a daily basis with no additional charges or paperwork required.

 

This builds on a pilot programme launched in September 2023, when SingPost signed a memorandum of understanding (MOU) with FedEx Express. Under the MOU, customers could drop-off their FedEx parcels at PopStop counters of six participating post offices &ndash in Punggol, Raffles Place, Tampines, Woodlands, Jurong and Marine Parade &ndash at no extra cost.

 

&ldquo The positive response from customers during the pilot period underscored the demand for greater convenience and accessibility in international shipping,&rdquo said SingPost.

 

The expanded collaboration aims to streamline the delivery process and enhance service efficiency, particularly for cross-border shipments, the group added.

 

Neo Su Yin, group chief operating officer at SingPost, said that partnerships with international logistics companies such as FedEx enable SingPost to offer its customers more options for international shipping by &ldquo streamlining logistics&rdquo for both businesses.

 

Eric Tan, managing director of FedEx Singapore, said that leveraging SingPost&rsquo s extensive postal network makes it more convenient for customers to access FedEx services.

 

The initiative is part of FedEx&rsquo s ongoing efforts to expand its access points and enhance its service offerings through collaborations. The additional SingPost locations bring FedEx&rsquo s drop-off points across Singapore to more than 410.

National postal service provider reports underlying net loss for H2 it will merge its Singapore, international segments

 

[SINGAPORE] Singapore Post (SingPost) on Thursday (May 15) ruled out the possibility of a nationalisation of the postal service provider, even as it said it is working with the Singapore government to come up with an operating model that is profitable and sustainable.

 

&ldquo Nationalisation is not on the cards,&rdquo said SingPost group chief financial officer Isaac Mah at a media briefing following the release of its earnings for the full year ended Mar 31.

 

&ldquo The government acknowledges that right now we do not have a sustainable operating model, especially for the post office network, and we are engaging them on correcting that model so that it&rsquo s sustainable,&rdquo he added.

 

&ldquo That is definitely one of the potential outcomes in this dialogue with the government,&rdquo Mah said. &ldquo But I do not want to run ahead of myself&hellip and at this point, we do not have any concrete details to share.&rdquo

 

He added: &ldquo We are looking at all options.&rdquo

 

Meanwhile, amid a cloudy global economic outlook marked by ongoing trade tensions, SingPost on Thursday also announced that it has &ldquo reintegrated&rdquo its international cross-border business into the Singapore postal and logistics business.

 

&ldquo Given the challenging environment and the risks around the geopolitical tensions, we&rsquo ve decided to move away from the space and refocus on our core competencies here in Singapore,&rdquo Mah explained.

 

The cross-border business will continue to be part of SingPost&rsquo s product offering, leveraging the international postal network. SingPost said that this is &ldquo to achieve business synergies and drive operational efficiencies&rdquo .

 

&ldquo The operating environment does look challenging, and the management is very conscious of it. We are keeping an eye on it, which is why we have proposed the restructure, or the reintegration of International into Singapore, so that we can unlock savings there,&rdquo Mah said. &ldquo On top of that, we are continuing to invest in key areas like sortation because that will create advantages for us and optimised margins as well.&rdquo

 

To this end, SingPost has invested S$30 million in a new automation system to expand processing capacity for small parcels at the Regional eCommerce Logistics Hub facility.

 

At the same time, following the divestment of its Australian business, Mah noted that SingPost is now in a net cash position. &ldquo We&rsquo ve actually strengthened our balance sheet to a position where we can then refocus and grow in Singapore,&rdquo he added.

 

Earnings disappointment amid headwinds

Shares of SingPost closed 11.8 per cent or S$0.075 lower at S$0.56 on Thursday, after the group reported an underlying net loss of S$461,000 for the second half-year ended Mar 31, from its net profit of S$28.1 million in the year-ago period.

 

Meanwhile, revenue was down 12.1 per cent at S$387.5 million for the half-year period, from S$440.6 million previously.

 

H2 net profit surged 232.7 per cent to S$222.5 million, from S$66.9 million in the corresponding year-ago period. However, this was mainly due to the recording of an exceptional gain from the divestment of its Australia business. The gain of S$222.2 million comprises largely of a gain on disposal of SingPost Australia Investments of S$302.1 million, as well as fair-value gains on properties of S$15.2 million. 

 

This was partially offset by impairment charges of S$79.6 million, primarily for Quantium Solutions. On Apr 16, SingPost and Alibaba agreed to unwind their respective minority cross-shareholdings on Quantium Solutions. The logistics company was majority-owned by SingPost, which paid Alibaba S$36.9 million for its stake.

 

SingPost proposed a special dividend of S$0.09 a share, following the divestment of SingPost Australia Investments. The date payable and record date will be announced later.

 

Earnings per share (EPS) stood at S$0.0989 including distribution to perpetual securities holders, from S$0.0297. Excluding the distribution, EPS stood at S$0.0965, up from S$0.0273.

 

For the full year, net profit jumped 212.9 per cent year on year to S$245.1 million from S$78.3 million. Revenue was down 7.5 per cent at S$813.7 million, from S$879.2 million.

 

Underlying net profit fell 40.3 per cent to S$24.8 million, from S$41.5 million the previous year.

 

By segment

SingPost&rsquo s operating profit in H2 for its Singapore postal and logistics segment fell 55.5 per cent year on year to S$7.4 million, from S$16.6 million. The group noted that the post office network remained unprofitable.

 

But in its property segment, operating profit for the period was up 17.8 per cent at S$24.5 million from S$20.8 million previously. This came largely from higher rental income from SingPost Centre.

 

SingPost&rsquo s international business posted a wider operating loss of S$5.3 million, from S$559,000 in the previous year, attributable to challenging business conditions in the cross-border business.

 

Its freight-forwarding business posted an operating profit of S$12 million, up 31 per cent from S$9.2 million, as the group benefited from higher sea freight rates. 

The group records a 40% fall in net profit as uncertain global logistics conditions pose challenges

 

[SINGAPORE] Shares of Singapore Post (SingPost) : S08 -11.81%plunged nearly 12 per cent on Thursday (May 15) morning, on the back of the postal and logistics group&rsquo s reporting of its second-half earnings for FY2024/2025.

 

At about 11.20 am, the stock was trading at S$0.56, down 11.8 per cent or S$0.075 from the previous close of S$0.635. A total of 44.7 million shares changed hands, based on ShareInvestor data.

 

The dip erases gains in the stock of more than 12 per cent since closing at S$0.565 on Apr 22. The counter hit its year-to-date peak of S$0.635 at the close on Wednesday.

 

While SingPost on Thursday declared a special dividend of S$0.09 per share following the sale of its Australian business, the group reported an underlying net loss of S$461,000, versus its net profit of S$28.1 million in the year-ago period.

 

This excluded the group&rsquo s net exceptional gain of S$222.2 million, the group said. This gain largely comprised the disposal amount of S$302.1 million and fair-value gains on properties of S$15.2 million, offset by impairment charges of S$79.6 million. The charges were primarily from an unwinding of cross-shareholdings on Quantium Solutions with Alibaba. The logistics company was majority-owned by SingPost, and SingPost paid Alibaba S$36.9 million for its stake.

 

Net profit fell 40.3 per cent year on year to S$24.8 million, with the group citing uncertain conditions within the global logistics sector.

 

The date payable and record date for the special dividend will be announced later, SingPost said.

Mah&rsquo s remarks came nearly three months after SingPost&rsquo s chairman, Simon Israel, told the media to &ldquo ask the government&rdquo when asked about the possibility of nationalisation at a  Feb 26 briefing.

https://www.theedgesingapore.com/news/corporate-moves/nationalisation-not-cards-singpost-continue-streamlining-business-says-group