SingPost H2 profit up 93.4% at S$66.9 million; proposes S$0.0056 per share final dividend

SingPost's net profit for the second half ended March surged by 93.4% to S$66.9 million from S$34.6 million the previous year, leading to an EPS of S$0.0273, up from S$0.013 in H2 FY2023. Including distribution to holders of its perpetual securities, EPS for the period stood at S$0.0297.

The company proposed a final dividend of S$0.0056 per share, totaling S$12.6 million for the financial year, a 40% increase from the previous year. With the interim dividend of S$0.0018 per share paid last November, total dividends would be S$0.0074 per share, representing 40% of the group’s underlying net profit.

Revenue for H2 FY2024 declined by 5.9% to S$859.5 million, mainly due to reduced sea freight revenues. SingPost's bottom line was bolstered by S$38.8 million in exceptional gains, primarily from a fair value gain on SingPost Centre. Operating expenses fell by 6.2%, and operating profit rose by 3.3% to S$53.5 million for the second half of the fiscal year.

For the full year, SingPost's net profit soared by 217.4% to S$78.3 million compared to FY2023, despite a 9.9% drop in revenue to S$1.7 billion, largely due to reduced sea freight revenues. Operating profit declined by 8.8% to S$84.9 million due to lower contributions from its subsidiary, Famous Holdings.

Looking ahead, SingPost noted ongoing challenges such as slower global trade, inflationary pressures, and geopolitical tensions but emphasized the positive results from its transformation strategy in its core businesses. CEO Vincent Phang stated that their transformation efforts continue to yield results amid the challenging economic and business landscape.