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

In early February Singapore Post Limited (SGX: S08) released its third quarter earnings update for its fiscal year ending 31 March 2018 (FY17/18). The reporting quarter stretches from 1 October 2017 to 31 December 2017.

As a quick introduction, Singapore Post is a mail and logistics services provider. It organises its business into three main segments: Postal, Logistics, and eCommerce.

Here are 10 things investors should know about Singapore Post’s latest results:

1. Revenue for the reporting quarter was up 11.7% year-on-year to S$412.8 million.

2. Quarterly operating profit improved 23.7% to S$46.1 million compared to a year ago.

3. Net profit attributable to shareholders in the reporting quarter jumped 37.2% year-on-year to S$43.0 million. Excluding exceptional items, Singapore Post’s underlying net profit was up 11.9% year-on-year to S$35.2 million.

4. Similarly, the company’s earnings per share (EPS) jumped 35.2% year-on-year to 1.73 cents.

5. The company’s operating profit margin improved from 10.1% a year ago to 11.2%, mainly due to growth in its property segment. There was higher rental income from the SingPost Centre retail mall, which opened in October 2017 after a period of redevelopment.

6. In the reporting quarter, Singapore Post generated free cash flow of S$82.0 million (S$96.0 million in operating cash flow, and S$14.0 million in capital expenditure), up significantly from the free cash flow of S$0.1 million seen a year ago (S$52.6 million in operating cash flow, and S$52.5 million in capital expenditure).

7. As of 31 December 2017, Singapore Post’s total debt stood at S$235.3 million while its cash and bank balances stood at S$284.3 million, giving rise to a net cash position of S$49 million.

8. The Postal, Logistics, and e-Commerce segments saw their revenues in the third quarter of FY17/18 grow by 15.8%, 1.5% and 19.7%, respectively, compared to the same quarter last year.

9. For the reporting quarter, the company has declared an interim dividend of 0.5 cent per share, unchanged from a year ago.

10. Paul Coutts, the chief executive officer of Singapore Post, gave a summary of the company’s results in the latest earnings update:

“Good execution across the Group saw us capture the benefits of a festive peak season in which eCommerce volumes made new records globally. During the quarter, revenue from eCommerce-related activities rose 26.4 per cent to S$247.8 million, hitting 60.0 per cent of total revenue.

We will move ahead with our strategy to become a leading postal and eCommerce logistics company to realise the full potential of our transformation.”

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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.