SingPost sees profits fall due to pandemic restrictions

Singapore Post’s (SingPost) revenue grew 9.6% in the first half of the financial year to S$707.8 million (£398.3 million) thanks to strong growth of e-commerce in the pandemic. Profits however dropped sharply by 42.1% to $30.9 million (£17.4 million) thanks to costs associated with delivery and logistics in the global outbreak of COVID-19.

Mr Paul Coutts, Group Chief Executive Officer, said: “SingPost is capitalising on the growth in eCommerce, which has resulted in our rise in revenue, off-setting the decline in letter mail volumes in the Domestic Post and Parcel segment.

“Despite the strong demand for our logistics and delivery services, margins for some of our business segments have been eroded through higher costs associated with Covid-19, and we expect this to be the case for as long as the global pandemic continues.

“While we remain optimistic in the strategies taken to reposition ourselves for the new norm, Covid-19 continues to pose significant challenges to the operating environment for businesses. Therefore, we remain judicious in managing our expenses, cashflow and liquidity, even as we execute our key strategic initiatives such as the Future of Post and recent investment in Australia in order to secure our future,” said Mr Coutts.