In early August, Singapore Post Limited (SGX: S08) or SingPost released its first quarter results for the financial year ending 31 March 2019 (FY18/19).
As a quick introduction, SingPost is a mail and logistics company, organised into four major segments of post and parcel, logistics, eCommerce and property. Today, we will take a closer look at its the performance of its logistics business. To start, let’s take a quick overview of the key numbers for the business segment.
Source: SingPost’s Result Presentation
From the above, we can see that SingPost has further categorised its logistic business into three sub-segment, namely Quantium Solutions, Couriers Please, and Famous.
As a whole, the logistics business segment delivered weaker year-on-year revenue but to turnaround from a loss of S$2.5 million last year to a S$0.1 million profit this quarter.
Despite lower volume in its freight forwarding business (which resulted in weaker year-on-year revenue), the logistic segment turned in a profit due to a turnaround at Quantium Solutions, which narrowed losses by 44.6% compared to the comparable quarter last year. At the same time, Famous Holdings and Couriers Please grew their earnings in this quarter.
Going forward, the company expects more integration between its logistics and eCommerce segments.
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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.