Saturday, September 6, 2025
  • Login
Forbes 40under40
  • Home
  • Technology
  • Innovation
  • Real Estate
  • Leadership
  • Money
  • Lifestyle
No Result
View All Result
  • Home
  • Technology
  • Innovation
  • Real Estate
  • Leadership
  • Money
  • Lifestyle
No Result
View All Result
Forbes 40under40
No Result
View All Result
Home Real Estate

SingPost completes strategic review; to reorganise business units and adopt new payout scheme

by Riah Marton
in Real Estate
SingPost completes strategic review; to reorganise business units and adopt new payout scheme
Share on FacebookShare on Twitter


SINGAPORE Post’s (SingPost) board has approved five growth drivers or “strategic thrusts” to be executed over the next three years, including the adoption of a new payout scheme.

This comes as the group on Tuesday (Mar 19) announced that it completed its strategic review, less than a year after it was initiated in May 2023.

The review was led by exclusive financial adviser BofA Securities, and focused on transitioning the group to a logistics business over time.

Firstly, the group will be reorganised into three business units: Singapore, Australia and International. Such a corporate structure “creates flexibility and facilities future optionalities”, it said.

SingPost’s revenue is presently derived from its three business segments of logistics, post and parcel, and property.

Last year, the group posted its first-ever full-year loss for the post and parcel business for FY2023, resulting in a group operating loss of S$15.9 million from an operating profit of S$24.9 million for FY2022.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

“Each business unit will have the agility and empowerment to operate in their own markets, to develop market leadership and build on their core capabilities according to their individual strategies,” said the group of its revised corporate structure.

“This provides clarity on the valuation of the individual businesses against comparable market and sector ratings.”

Next, the group targets for each of these business units to generate a spread above the cost of capital.

To do so, it has identified a list of its non-core assets and businesses – including selected properties and various international assets – which may be monetised for capital recycling.

SingPost will also endeavour to pay out 30 to 50 per cent of its underlying net profit from FY2024 to FY2025. It said the board views such a policy as “balanced” in view of the group’s capital requirements and delivering “sustainable returns” to shareholders.

Previously, the group’s dividend policy was based on a payout ratio of 60 to 80 per cent of underlying net profit for each financial year.

SingPost acknowledged in its FY2023 annual report that it did not adhere to this dividend policy range over the last three financial years, due to operating environment challenges and the need to conserve cash for its investment in growth initiatives.

For the financial year ended Mar 31, 2023, the group’s total dividends stood at S$0.0058 per share, comprising a final dividend of S$0.004 per share and an interim dividend of S$0.0018 per share. This represented about 40 per cent of the group’s underlying net profit for FY2023.

The other three “strategic thrusts” identified by the group comprise transforming urban logistics and deliveries in Singapore, achieving scale in Australia, and leveraging its asset-light model and fourth-party logistics platform to serve cross-border customers.

Group chief executive Vincent Phang said the company will focus on executing these new growth drivers to “create market leadership, orientate to growth and generate shareholder value”.

Shares of SingPost closed flat at S$0.38 on Monday.

The group said that its current share price “does not appropriately reflect the intrinsic value of the company”.

Chairman Simon Israel noted that such a gap is “particularly apparent” considering SingPost Centre’s value of about S$1 billion as at end-September 2023, the Australia business, and the group’s overall growth potential.

“Management’s execution of our strategy will unlock value for shareholders and deliver agility and sustainable long-term growth as an international logistics enterprise.” 

Tags: AdoptBusinesscompletesPayoutreorganiseReviewSchemeSingPostStrategicUnits
Riah Marton

Riah Marton

I'm Riah Marton, a dynamic journalist for Forbes40under40. I specialize in profiling emerging leaders and innovators, bringing their stories to life with compelling storytelling and keen analysis. I am dedicated to spotlighting tomorrow's influential figures.

Next Post
US standards body says ByteDance researcher wrongly added to AI safety groupchat

US standards body says ByteDance researcher wrongly added to AI safety groupchat

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Forbes 40under40 stands as a distinguished platform revered for its commitment to honoring and applauding the remarkable achievements of exceptional individuals who have yet to reach the age of 40. This esteemed initiative serves as a beacon of inspiration, spotlighting trailblazers across various industries and domains, showcasing their innovation, leadership, and impact on a global scale.

 
 
 
 

NEWS

  • Forbes Magazine
  • Technology
  • Innovation
  • Money
  • Leadership
  • Real Estate
  • Lifestyle
Instagram Facebook Youtube

© 2025 Forbes 40under40. All Rights Reserved.

  • About Us
  • Advertise
  • Contact Us
No Result
View All Result
  • Home
  • Technology
  • Innovation
  • Real Estate
  • Leadership
  • Money
  • Lifestyle

© 2024 Forbes 40under40. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In