Investors Should See These 3 Key Charts for Singapore Post Limited

Singapore Post Limited (SGX: S08) had hosted a presentation for its fiscal fourth-quarter earnings release recently. The presentation contained three important charts on the future of Singapore Post’s business. As a brief background, Singapore Post’s business is organised into three major segments: Mail, Logistics, and Retail & eCommerce.

Traditional mail is not dead

The first chart looks at the revenue performance of the three business segments. This chart is notable as it compares the revenue performance of the individual business segments for FY14/15 (fiscal year ended 31 March 2015) and FY15/16.

2016-05-24 Singpost Revenue
Source: Singapore Post’s earnings presentation

From it, we can see that the mail segment’s revenue had been relatively unchanged, while the Logistics and Retail & eCommerce segments had contributed to the bulk of Singapore Post’s overall revenue growth. Chief Financial Officer, Mervyn Lim, noted the importance of the Mail segment’s stable performance. He said:

“This has provided us with a firm foundation on which to focus our resources on eCommerce-related businesses.”

eCommerce is taking off

As Lim noted, Singapore Post is focusing its resources around eCommerce-related businesses. This leads us to the second graph:

2016-05-24 Singpost eCommerce
Source: Singapore Post’s earnings presentation

For FY15/16, Singapore Post’s eCommerce-related revenue was $412.4 million, up by over 60% from the $257.2 million recorded in FY14/15. The company’s eCommerce-related revenue contributed to 36% of FY15/16’s total revenue, up from the selfsame figure of 28% registered in the last fiscal year.

The eCommerce trend benefits all three of Singapore Post’s business segments.

From the total eCommerce-related revenue, the Mail segment contributed over $165 million, the Logistics segment contributed almost $149 million, while the remaining $98.4 million came from the Retail & eCommerce segment.

Overseas growth

eCommerce growth also means that Singapore Post is spreading its wings beyond the shores of Singapore. During the call, Lim noted that Singapore Post managed to record over $1 billion in revenue for the first time for FY15/16.

What’s interesting is how much of the revenue is coming from overseas.

Singapore Post overseas revenue chart
Source: Singapore Post’s earnings presentation

For FY15/16, overseas revenue accounted for over half a billion in sales, or almost 44% of Singapore Post’s total revenue. This compares with the selfsame figure of 32.5% recorded in FY14/15. Singapore Post has seen its overseas revenue grow by almost 70% compared to the previous fiscal year.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.