The group posts 40% fall in net profit as uncertain global logistics conditions pose challenges
[SINGAPORE] Shares of Singapore Post (SingPost) plunged nearly 12 per cent on Thursday (May 15) morning, after the postal and logistics group reported second-half earnings for FY2024/2025.
At about 11.20 am, the stock was trading at S$0.56, down 11.8 per cent or S$0.075 from the previous close of S$0.635. A total of 44.7 million shares changed hands, based on ShareInvestor data.
The dip erases gains in the stock of more than 12 per cent since closing at S$0.565 on Apr 22, reaching its year-to-date peak of S$0.635 at the close on Wednesday.
While SingPost on Thursday declared a special dividend of S$0.09 per share following the sale of its Australian business, the group reported an underlying net loss of S$461,000, versus net profit of S$28.1 million in the year-ago period.
This excluded the group’s net exceptional gain of S$222.2 million, the group said. This gain largely comprised the disposal amount of S$302.1 million and fair value gains on properties of S$15.2 million, offset by impairment charges of S$79.6 million. The charges were primarily from an unwinding of cross-shareholdings on Quantium Solutions with Alibaba. The logistics company was majority-owned by SingPost, and SingPost paid Alibaba S$36.9 million for its stake.
Net profit also fell 40.3 per cent year on year to S$24.8 million, with the group citing uncertain conditions within the global logistics sector.
The date payable and record date for the special dividend will be announced later, SingPost said.
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