SingPost posts 75.2% drop in FY2025 net profit, retains SingPost Centre

Singapore Post Limited (SingPost) reported a sharp decline in earnings for the financial year ended 31 March 2026, as weakness in international e-commerce deliveries and continued declines in traditional mail volumes weighed heavily on the postal and logistics group’s performance.

Net profit attributable to equity holders for FY2025 fell 75.2 per cent year on year to S$60.9 million, down from S$245.1 million previously.

Revenue for the full year declined 23.1 per cent to S$376.1 million, compared with S$489.1 million a year earlier.

The group said the lower revenue was primarily driven by a 55.2 per cent contraction in international business amid volatile global macroeconomic conditions, alongside structural declines in domestic letter mail volumes.

Operating profit for the year fell 68.9 per cent to S$11.8 million from S$37.9 million previously.

Shares of SingPost fell as much as 4 per cent to S$0.36 during morning trading on 14 May 2026.

The stock has declined 43.3 per cent from its closing price of S$0.635 a year earlier.

Second-half earnings also weakened significantly.

Net profit for the six months ended 31 March declined 81.5 per cent to S$41.2 million from S$222.5 million in the corresponding period a year earlier.

Revenue for the half-year period fell 18.2 per cent to S$187.6 million.

Earnings per share for the second half stood at S$0.0183, compared with S$0.0989 previously. Full-year earnings per share also declined to S$0.027 from S$0.1089 a year earlier.

Underlying business pressures

SingPost said the operating environment for its logistics and letters business remained challenging, particularly in international e-commerce delivery services.

According to the company’s media release, international e-commerce volumes fell 57.9 per cent year on year due to difficult global business conditions.

However, domestic e-commerce activity showed some resilience.

The company said domestic e-commerce volume rose 8.1 per cent during the year, while a postage rate revision implemented on 1 January 2026 partially offset a 13.5 per cent structural decline in traditional domestic letter mail volumes.

The post office network business also continued restructuring efforts.

Operating losses for the segment narrowed 27.4 per cent to S$10.7 million after SingPost reduced operating expenses by 20 per cent through optimisation of its physical footprint.

Meanwhile, the property assets segment remained one of the group’s strongest performers.

Property revenue increased 2 per cent to S$80.7 million, while operating profit for the segment reached S$45.2 million.

Occupancy across its property portfolio rose to 99.4 per cent from 98.2 per cent previously, supported by positive rental reversions.

Strategy reset and SingPost Centre reversal

SingPost unveiled what it described as a three-pillar reset strategy aimed at sustainable long-term growth.

The strategy focuses on strengthening core fundamentals, building scalable capabilities and capturing future growth opportunities.

Chief executive officer Mark Chong described the latest results as “a consolidated baseline” for future rebuilding efforts.

“Our results for the year reflect a consolidated baseline from which we will now strengthen and scale our business,” Chong said.

“Our strategy outlines our roadmap to navigate evolving market dynamics and drive long-term shareholder value.”

He added: “By investing in technology and automation; focusing on asset enhancement in our Property portfolio and working towards financial sustainability in our business, we are fortifying the core of SingPost while expanding purposefully into new logistics services.”

One of the group’s most notable strategic shifts was its decision to retain SingPost Centre, reversing a previous direction under the former board during the 2023/2024 period to explore disposal of the Paya Lebar headquarters property.

SingPost said the building would remain “a cornerstone” of its property assets business.

“The group will retain SingPost Centre and leverage the government’s longer-term blueprint for the Paya Lebar region to reap potential value-enhancing opportunities for the benefit of shareholders,” the company said.

The group added that it is evaluating near-term enhancement plans to improve the property’s efficiency and yield.

Technology and automation push

SingPost said it is transitioning its logistics and letters operations towards an improved operating model over the next few years to adapt to changing market demand.

The company plans to integrate artificial intelligence and automation technologies across its operations.

According to the company, these initiatives are expected to reduce operating costs by more than 10 per cent while improving processing capabilities through automation, autonomous vehicles and robotics.

At the same time, SingPost said it intends to leverage its “last mile advantage” to expand into logistics opportunities including warehousing and value-added services.

The company also plans to optimise its post office network footprint further while improving rental income generated from post office properties and creating new revenue streams.

SingPost said the post office network was now “on a firm path to achieve commercial sustainability”.

Dividend proposals

The board has proposed a final dividend of S$0.0006 per ordinary share, amounting to S$1.4 million.

Combined with the interim dividend of S$0.0008 per share paid in December 2025, total ordinary dividends for FY2025 would amount to S$0.0014 per share.

In addition, the board proposed a supplemental dividend of S$0.0041 per share, amounting to S$9.3 million.

According to SingPost’s press release, the supplemental dividend was derived from the net-of-tax derecognition of aged trade payables.

The proposed dividends remain subject to shareholder approval at the company’s upcoming annual general meeting. The payment and record dates will be announced later.

The group said it would continue monitoring macroeconomic and geopolitical developments closely to maintain operational resilience and agility.