SINGAPORE: Singapore Post Limited (SingPost) recorded a 23.8% year-on-year (YoY) decline in operating profit for the third quarter of the financial year 2024/2025, bringing it down to $21.1 million, according to a bourse filing on 20 February 2025. The company attributed this decline to rising expenses in both its Singapore and international operations, which outpaced revenue growth.
SingPost cited macroeconomic headwinds such as higher inflation, supply chain disruptions, and an increasingly competitive market as key factors affecting its financial performance. These challenges have put pressure on both its domestic and international segments.
Despite the tough operating environment, SingPost saw a 3.4% YoY increase in overall delivery volumes within its postal and logistics segment. This was mainly driven by growth in letter mail volume, which helped counteract a decline in eCommerce shipments, partly due to service performance issues.
However, despite the volume increase, revenues in the Singapore segment fell YoY, primarily due to weaker earnings from logistics, financial, and other services. The drop in revenue, combined with the high costs associated with maintaining the post office network, led to an operating loss in the Singapore postal and logistics business—a stark contrast to the profit recorded in the same period last year.
SingPost’s cross-border business struggled with a 29.6% YoY drop in volumes, leading to a decline in revenue. The ongoing contraction in cross-border eCommerce demand, coupled with challenging market conditions, resulted in an operating loss for the segment in Q3.
In response to these challenges, SingPost plans to streamline its operations by divesting non-core businesses and assets. The first step in this strategy is the proposed sale of its Australia business to Pacific Equity Partners for $1.02 billion, which remains subject to shareholder approval.
Following this divestment, SingPost intends to review and reset its overall business strategy, aiming to strengthen its core operations and improve long-term profitability.
Separately, SingPost has also revealed plans to restructure its workforce, which will involve the layoff of 45 employees. The company emphasized that the decision is unrelated to any previous incidents or reports, despite speculation surrounding the move.
According to CNA, the majority of the layoffs would affect the corporate support department, with a smaller number coming from the international business department.
A SingPost spokesperson told the press that the restructuring decision was not made lightly. “The company has made every effort to find alternative positions internally for the affected employees,” the spokesperson said, highlighting the company’s efforts to minimize the impact on its workforce.