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

Earlier this month, Singapore Post Limited (SGX: S08), or SingPost, released its 2017/18 fourth quarter (4Q FY17/18) earnings. As a quick introduction, SingPost is a mail and logistics company, organised into three major segments of Mail/Postal, Logistics, and Retail & eCommerce.

Here, we will look at 10 things that investors should know from its latest earnings update:

1. Sales for the quarter improved 13.5% year-on-year to S$367.5 million.

2. Quarterly operating profit improved from a loss of S$66.5 million last year to S$40.1 million.

3. Net profit for the quarter turned from a loss of S$65.2 million to a profit of S$23.9 million. Excluding exceptional items, underlying net profit was down 28.6% to S$15.3 million.

4. Similarly, earnings per share turned positive from a loss of 3.03 cents last year to 0.90 cents this quarter.

5. Operating margin percentage improved to 10.9% this quarter, mainly due to absence of loss on exceptional items.

6. Year-to-date, SingPost generated free cash flow of S$136.1 million, up from S$0.3 million last year, mainly due to reduction in capital expenditure.

7. As at 31 March 2018, SingPost’s borrowing stood at S$244.0 million while its cash and bank balances stood at S$314.1 million, giving it a net cash position of S$70.1 million. This was up from a net cash position of S$2.6 million as at 31 March 2017.

8. Postal, Logistics and e-Commerce segments saw revenue for the quarter grow by 18.2%, 2.0% and 15.7%, respectively, as compared to the same quarter last year.

9. The company proposed a final dividend of 2.0 cents per ordinary share. Including the interim dividend, total dividend per share for FY17/18 was 3.5 cents.

10. Paul Coutts, SingPost’s chief executive, commented:

“SingPost is well positioned to benefit from the strong growth in global eCommerce and last-mile deliveries as we progress to the next phase of our strategy.

We continue to execute on our transformation and build on our partnership with Alibaba in eCommerce. We are integrating and scaling our eCommerce businesses in the US and Southeast Asia, as well as the rest of our overseas operations, and optimising the cost structure of the SingPost Group.”

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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.