Singapore Post Limited (SGX: S08), or SingPost, released its full-year earnings for 2018/19 yesterday. SingPost is a ubiquitous presence in Singapore. It is a mail and logistics company, organised into four major segments; Post and Parcel, Logistics, eCommerce, and Property.
Let’s have a look at eight things that investors should know from its latest earnings update:
Our FREE SGX stock pick!
- Sales revenue for the quarter improved by 2.9% year-on-year to S$1.56 billion.
- Full year operating profit, however, declined 7.2% year-on-year to S$136.3 million.
- Net profit for the quarter dropped 86% year-on-year to S$19 million. Excluding exceptional items, underlying net profit was down 5.8% to S$100.1 million.
- Similarly, earnings per share attributable to shareholders declined from 5.32 cents last year to 0.18 cents in 2019.
- For the full year, SingPost generated free cash flow of S$120.9 million, down from S$136.1 million last year, mainly due to lower operating cash flow.
- As at 31 March 2019, SingPost’s borrowing stood at S$290.9 million while its cash and bank balances stood at S$392.2 million, giving it a net cash position of S$101.3 million. This was up from a net cash position of S$70.1 million on year.
- The postal segment’s revenue grew by 4.1% for the year. This was offset by lower revenue in the Logistics and e-Commerce segments, with both seeing a 0.3% reduction. The property segment registered a 13.5% increase in revenue on year.
- The company proposed a final dividend of 2 cents per ordinary share, bringing its total dividend for the year to 3.5 cents.
Mr. Paul Coutts, Group CEO of SingPost, commented:
“Despite our best efforts in turning the U.S. business around, we faced increasingly intense challenges which impacted our performance. As a result, we made the difficult decision to commence the sale process for our U.S. eCommerce business.We remain committed to our eCommerce business, as it remains a key part of our strategy towards future financial growth.
The Group’s competitive advantage lies in the Asia Pacific where we are seeing the strongest growth in volumes and yields, and we will continue to refine our businesses to leverage the growth. In the immediate term, we continue to focus on improving our operations in Singapore to better serve the needs of customers in our home market.”
Click here now for your FREE subscription to Take Stock Singapore, The Motley Fool’s free investing newsletter. Written by David Kuo, Take Stock Singapore tells you exactly what’s happening in today’s markets, and shows how you can GROW your wealth in the years ahead.
The Motley Fool’s purpose is to help the world invest, better. Like us on Facebook to keep up-to-date with our latest news and articles.
Motely Fool writer Esjay contributed to this article. Esjay does not own shares in Singapore Post.
The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Tim Phillips doesn’t own shares in any companies mentioned.