17 Key Figures Investors Should Know About Singapore Post Limited

Credit: Axisadman

Singapore Post Limited  (SGX: S08) released its annual report earlier this week on Wednesday. The annual report could be a great place to learn more about the logistics and postal services provider.

Here are 17 interesting and important figures from SingPost’s annual report that investors might want to sit up and take notice of:

  1. SingPost has paid a total of S$0.904 per share in dividends since its initial public offering (IPO) in 2003. Lim Ho Kee, SingPost’s chairman for FY15/16 (fiscal year ended 31 March 2016), noted that this cumulative amount exceeds the company’s listing stock price of S$0.60. Lim, who has been a director of SingPost since 1998, had stepped down from the chairman’s seat on 10 May 2016 and has been replaced by Simon Israel.
  2. The Singapore Post Centre Retail Mall is under redevelopment. It is expected to double its retail space to 25,000 square meters once it is completed in mid-2017. SingPost believes that the refurbished mall will offer a different shopping experience, bringing together the best of online and offline platforms.
  3. Elsewhere, SingPost is also partnering SATS Ltd (SGX: S58) to integrate its airport consignment outbound operations. The SATS eCommerce AirHub will introduce automation which is expected to improve productivity by over 30%.
  4. SingPost also reported that it processes over S$5 billion in gross merchandise value a year on its eCommerce networks. It also provides end-to-end logistics solutions to more than 100 leading brands such as adidas, Calvin Klein and Muji.
  5. SingPost is making strides in end-to-end logistics. For instance, the company mentioned in its annual report that it has a POPStation at 140 locations around Singapore. The average distance between the lockers is just two kilometres, making it one of the world’s densest networks of self-service lockers.
  6. Acquisitions might be adding to SingPost’s logistics network in different ways. The TradeGlobal purchase gives SingPost access to serve over 60 leading brands in the fashion, beauty and lifestyle sectors. Meanwhile, the Jagged Peak acquisition brings omni-channel order management systems that are used in over 20 warehouse facilities in North America and Europe. In all, SingPost now operates over 50 fulfilment centres across 19 markets.
  7. Singapore’s largest telecommunications company, Singapore Telecommunications Limited (SGX: Z74), is SingPost’s largest shareholder with a 23% stake. Chinese eCommerce giant Alibaba is in second place with a 10% stake.
  8. Let’s look at some financial figures as well. For FY2015/16, SingPost has a net debt position of $153.6 million and negative free cash flow of $148.3 million. This is the first time in five fiscal years in which SingPost has reported both negative free cash flow and a net debt position.
  9. SingPost also reported a net debt to equity ratio of 12.8 times and an EBITDA (earnings before interest, taxes, depreciation and amortisation) to interest expense ratio of over 42 times. These figures suggest that SingPost’s debt is manageable. But, investors might still want to keep an eye on the company’s ability to generate free cash flow in the future.

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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.