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10 Important Things Investors Should Know About Singapore Post Limited’s Latest Earnings

Singapore Post Limited (SGX: S08) is a mail and logistics services provider. It organises its business into three operational segments: Postal, Logistics, and eCommerce.

Two weeks ago, the company reported its second quarter results for its fiscal year ending 30 June 2018 (FY17/18). Let’s look at 10 important things from the earnings announcement that investors should know:

1. Quarterly revenue improved 10.2% year-on-year to S$354.7 million

2. Quarterly operating profit declined 21.6% to S$29.9 million compared to a year ago, driven mainly by higher expenses and lower one-off gains (S$0.89 million versus S$4.37 million).

3. Quarterly net profit attributable to shareholders declined 9.5% year-on-year to S$28.5 million. Excluding exceptional items, underlying net profit inched up by 1.9% to S$27.6 million compared to the same quarter a year ago.

4. Earnings per share (EPS) for the reporting quarter dropped by 14.8% to 1.09 cents from the second quarter of FY16/17.

5. For the reporting quarter, the operating margin declined from 11.8% a year ago to 8.4%.

6. Singapore Post’s operating cash flow was a negative S$7.9 million in the reporting quarter. Comparatively, it generated positive operating cash flow of S$21.3 million a year ago.

7. As of 30 September 2017, Singapore Post’s cash and cash equivalents stood at S$282.3 million, up from S$158.0 million a year ago. Meanwhile, total borrowings decreased from S$406.4 million to S$306.9 million. This shows that the company’s balance sheet has strengthened.

8. Of the three business segments Singapore Post has, Postal and Logistics posted higher revenue compared to a year ago, while eCommerce saw lower revenue.

9. Only the Postal segment delivered a positive operating profit for the reporting quarter; it delivered S$35.1 million in operating profit.  The other two segments, Logistics and eCommerce, generated negative operating profits of S$4.2 million and S$2.9 million, respectively.

10. Singapore Post declared an interim dividend of 0.5 cents per share for the reporting quarter. This was 50% lower than the interim dividend of 1.0 cent per share seen a year ago.

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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 Lawrence Nga doesn’t own shares in any companies mentioned.