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SingPost records S$9.9 million loss for H1 on exceptional charge

An image showing the blue facade of the SingPost Regional eCommerce Logistics Hub in Singapore.
A general view of the SingPost Regional eCommerce Logistics Hub in Singapore on 1 November 2016. (PHOTO: ROSLAN RAHMAN/AFP via Getty Images)

By Tria Dianti

SINGAPORE – Singapore Post Limited (SingPost) on Thursday (3 November) reported a net loss of S$9.9 million for the half year ended 30 September 2022 due to an exceptional charge of S$21 million despite earning the highest revenue in the group's history within any half year.

The loss, according to a press release, is caused by a fair value charge of S$21 million arising from the higher put option redemption liability on Freight Management Holdings Pty Ltd (FMH) in Australia.

However, the group's revenue for the first half rose 31.1 per cent from S$731.4 million during the same period a year ago to S$958.9 million currently. This hike was led by growth in the logistics segment which included the consolidation of 51 per cent-owned FMH, which operates a fourth-party logistics service business that provides integrated supply chain and distribution solutions.

"The group is evolving into a global logistics player with digitally-enabled capabilities and sustainable cost-effective solutions," said Vincent Phang, SingPost’s group chief executive officer.

"We continue to execute our transformation efforts with investments made in Australia, executing our Future of Post strategy for our Domestic business, and reigniting the International business. In Australia, we are building a technology-led integrated B2B and B2C logistics business, where revenues now make up over 42 per cent of the group's, up from 17 per cent a year ago," he added.

Revenue rose in the logistics segment by 79.4 per cent, "mainly driven by the consolidation of FMH with effect from December 2021 and international freight forwarding volume growth". The logistics segment now represents the group's largest segment by revenue and profit contribution.

Meanwhile, the logistics segment's operating profit grew to S$41.5 million, or more than double the S$16.2 million in the same period last year.

In the post and parcel segment, revenue declined 19.6 per cent to S$261.7 million due to the challenging operating environment, mostly in the first quarter.

For the first half of FY2022/2023, SingPost has declared an interim dividend of 0.18 cent per ordinary share. This dividend will be paid on 30 November 2022.

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