SingPost’s first-half net profit falls 17.1% to S$18.4 million amid weak logistics sector

Singapore Post (SingPost) recorded a 17.1 per cent year-on-year fall in net profit to S$18.4 million (US$14.1 million) for the first half of its financial year ending 30 September 2025, according to unaudited results released on 10 November 2025.

The company attributed the decline to the loss of income from its divested Australia business, which had contributed in the prior period, partially offset by exceptional gains in the current half year.

Revenue for the half year fell 27.4 per cent to S$188.4 million, reflecting what SingPost described as “a challenging operating environment for the logistics business, particularly in cross-border ecommerce delivery volumes.”

Operating expenses decreased 25.5 per cent year-on-year to S$182.4 million, following efforts to streamline operations post-divestment. Labour and related costs dropped 10.9 per cent to S$92.8 million, while volume-related expenses fell sharply by 58.6 per cent to S$31.6 million due to lower cross-border volumes.

In February 2025, SingPost laid off 45 employees across its corporate support and international business units as part of a restructuring exercise prompted by “prolonged macroeconomic challenges” and heightened competition.

Excluding exceptional items, underlying net profit for the first half fell 78 per cent year-on-year to S$5.5 million, due to changes in discontinued operations.

Chief Executive Officer Mark Chong said the company’s results “reflect the full impact of the streamlining of our business”. He added: “This team has delivered a positive start to the first half, despite the persistent weakness in the global logistics and ecommerce sector. We will continue to invest in our infrastructure to enhance our service levels while managing our cost base.”

Since April 2025, SingPost has reorganised its reporting into three segments — logistics and letters, post office network, and property assets.

Revenue declined in two of the three segments. The logistics and letters division, encompassing domestic and international mail and parcel activities, posted a 33.1 per cent fall in revenue to S$153.5 million, largely due to a 63 per cent drop in cross-border ecommerce volumes and weaker domestic demand. The segment shifted from an operating profit of S$13.7 million last year to an operating loss of S$4.4 million.

The post office network segment, which earns income from agency services and product sales, recorded a 13.9 per cent revenue decline to S$5.7 million, mainly from reduced agency service income. However, the operating loss narrowed to S$5.8 million from S$6.7 million due to the closure of several post office operations.

The property assets segment was the only one to post growth, with revenue up 3.4 per cent year-on-year to S$40.6 million, driven by stronger rental income from SingPost Centre, which achieved a 99.2 per cent occupancy rate as of 30 September. Operating profit dipped slightly to S$23.9 million, down from S$24.7 million, due to higher property-related costs.

As of 30 September, SingPost held S$594.1 million in cash.

The company remains under scrutiny following a separate incident in December 2024, when it dismissed three senior executives — former Group CEO Vincent Phang, former Group CFO Vincent Yik, and the former head of the international business unit Li Yu — after an internal probe found “grossly negligent” behaviour in their handling of internal investigations. The trio have said they intend to contest their dismissals.