SingPost crosses S$1b in annual revenue with help from ecommerce and logistics

SingPost, Singapore’s national mail carrier which is rapidly diversifying its business, has posted record highs in annual revenue and net profit, driven by its ecommerce and logistics activities.

Its 2015 revenue hit US$840 million, up 25 percent year-on-year. Net profit jumped 58 percent to US$181 million. Growth in its ecommerce and logistics revenue outpaced overall growth, soaring 60 percent and 35 percent to US$300 million and US$457 million, respectively.

The company’s ecommerce division essentially helps customers manage the entirety of their online retail operations, from marketing to website creation to logistics.

SingPost attributes part of its ecommerce growth to acquisitions of Trade Global and Jagged Peak. As such, it remains to be seen whether it can organically sustain the same levels of growth in this segment.

Surprisingly, its mail revenue has grown too, but at just 6.7 percent, which means its share in SingPost’s overall business has shrunk.

SingPost has had to weather some storms lately. Its CEO Wolfgang Baier resigned abruptly after helming the firm for four years. It’s still finding a replacement.

One of the company’s board members, Keith Tay, was accused of disclosure failures and breach of duties. He had to step down as a result.

Finally, a deal for Chinese ecommerce behemoth Alibaba to acquire an additional five percent stake in SingPost was delayed for the third time, as a “longer time is required to fulfil the conditions precedent.”

Converted from Singapore dollars. US$1 = S$1.36