Singapore Post (SingPost) has announced a full-year net profit of S$245.1 million for the financial year ending 31 March 2025, more than double its earnings from the previous year.
The profit boost was primarily driven by an exceptional gain of S$222.2 million, stemming from the divestment of its Australian operations.
The gain was largely attributed to the disposal of SingPost Australia Investments, which generated S$302.1 million.
Additionally, the company recorded a fair value gain of S$15.2 million on properties.
These gains were offset in part by impairment charges of S$79.6 million, mainly related to its logistics arm, Quantium Solutions.
The divestment was first reported in December 2024, when SingPost disclosed its plan to sell Freight Management Holdings (FMH) to private equity firm Pacific Equity Partners.
The sale was initially expected to realise a disposal gain of S$312.1 million.
Proceeds used to boost balance sheet and shareholder returns
According to SingPost’s media release on 15 May, proceeds from the transaction have been directed towards debt reduction, strengthening the company’s balance sheet, and funding future growth initiatives.
A portion has also been allocated to shareholder returns, including a proposed special dividend of S$202.5 million, equivalent to 9 cents per ordinary share.
Simon Israel, chairman of the SingPost board, said: “The transaction has crystallised the unrealised value of the business, bringing forward the unlocking of value and returning capital to shareholders.”
The special dividend remains subject to shareholder approval during the 33rd Annual General Meeting. Payment and record dates will be disclosed in due course.
Underlying profit weakens despite headline growth
Excluding the exceptional gain, SingPost’s underlying net profit declined more than 40 per cent to S$24.8 million.
The company also reported a net loss of S$0.5 million in the second half of the financial year, compared to a profit of S$28.1 million during the same period the previous year.
SingPost attributed the drop to “intensifying challenging and uncertain conditions in the global logistics sector”.
Total revenue for the year stood at S$813.7 million, a 7.5 per cent decrease from the previous year.
The international segment was most affected, recording an 11.2 per cent drop in revenue to S$494.3 million.
In contrast, revenue from the Singapore segment increased by 2.9 per cent to S$326.7 million.
The property business within this segment performed strongly, with revenue rising 11.9 per cent to S$86.9 million.
While the freight forwarding unit Famous Holdings showed some positive momentum, SingPost noted the overall international segment performance remained “muted”.
Persistent global uncertainties weigh on logistics
SingPost warned that the global economic outlook continues to be uncertain, citing ongoing trade tensions exacerbated by US tariffs and retaliatory actions by major trading partners.
“These developments have disrupted international trade flows, created greater volatility in supply chains and weakened global economic forecasts,” the company said.
It further noted that cross-border logistics volumes have been under pressure, adding: “This, along with geopolitical tension, has led to a more uncertain and challenging operating environment.”
SingPost anticipates these difficult conditions to persist into the current financial year.
In response to these pressures, the company has begun refocusing on its core operations following the sale of its Australian business.
The international cross-border business has now been reintegrated into the Singapore postal and logistics segment. This move is intended to streamline operations, enhance business synergies, and drive efficiencies.
As part of its operational upgrade, SingPost is investing S$30 million in a new automation system.
The system will expand small parcel processing capacity at its Regional eCommerce Logistics Hub, supporting future growth in the segment.
The company said it remains in dialogue with the Singapore government to develop a new operating model that ensures the sustainability and profitability of the national postal service.
Ongoing cost management and strategic reset
SingPost reiterated its commitment to disciplined capital management and cost prudence.
It continues to assess opportunities to divest non-core businesses and assets, aiming to unlock additional shareholder value.
A strategic review and reset of its long-term direction are currently underway.
In February 2025, the company laid off 45 employees, mainly from corporate support units, as part of a restructuring effort.
SingPost said it had explored all internal redeployment options before proceeding with the layoffs.
These restructuring efforts follow a leadership shake-up in December 2024, when three senior executives were dismissed after a whistleblower report led to internal investigations.
The terminated executives were group CEO Vincent Phang, group CFO Vincent Yik, and Li Yu, chief of SingPost’s international business unit. All three have stated their intention to contest their dismissals.
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