For imm
mediate releaase
SingPost Group’s unaudite
ed results
for the fourth quarter an
nd full year end
ded 31 March 2
2014
Trans
sformation efforts contribute
c
e to stable
e performance
b under pressure
p
while Grroup contiinues to be
• Domestic mail volumes con
ntinued to de
ecline for se
econd consecutive year, compounde
ed by
escalating labour costs
erce related activities co
ontribute to growth
g
• New subsidiariess & e-comme
• Inccreasing cosst pressures
s especially in Singapore
e, together w
with continue
ed investmen
nt in
servvice quality a
and productiivity in Singa
apore
ore, 16 May 2014 – Sing
gapore Post Limited (“SiingPost”) tod
day announcced its unaudited
Singapo
results fo
or the fourth quarter and full year ended 31 Marc
ch 2014. Be
elow are som
me highlightss.
FINANCIA
AL HIGHLIGHT
TS
GROUP
RESULTS
Revenue
Rental &
Property-Re
elated
Income
Total Expenses
Q4 FY13/14
F
(S$M)
4 FY12/13
Q4
(S$M)
V
Variance
(%)
Full Year
FY13/14
(S$M)
Full Year
FY12/13
(S$M)
Variance
(%)
193.3
182.5
5.9
821.1
658.8
24.6
10.9
11.2
(2.6)
44.9
42.9
4.6
170.0
163.8
3.8
691.5
546.9
26.4
Net Profit
30.7
26.1
17.7
143.1
136.5
4.8
Underlying Net
N
Profit
31.4
31.8
(1.3)
145.0
141.0
2.9
85.1
73.4
241.8
203.0
1.420 cts
1.185 cts
6.746 cts
6.435 cts
Net Cash fro
om
Operating
Activities
Earnings per
Share
New sub
bsidiaries and
a
regiona
al e-comme
erce related
d business contribute
e to growth
h but
Group under increa
asing pressure
• Dome
estic mail vo
olumes conttinued to decline for seccond conseccutive year, compounde
ed by
escallating labourr costs
• New subsidiariess & e-comme
erce related activities co
ontribute to g
growth
• Increasing cost pressures
p
es
specially in Singapore
S
an
nd also from
m international terminal d
dues,
togetther with con
ntinued inves
stment in service qualityy and producctivity in Sing
gapore
In spite of
o the decline in the trad
ditional posta
al business, Group reve
enue grew 5.9% in the fo
ourth
quarter of
o FY2013/14
4, boosted by
b the full co
onsolidation of new subssidiaries and
d the growth in ecommerc
ce related businesses.
b
Excluding contributions
c
s from the new
n
subsidia
aries, the Group
G
recorded
d organic revvenue growth
h of 3.0%.
In Mail, domestic mail
m
volumes
s continued to decline in Q4, with
h the full ye
ear registering a
reduction
n of 1.3%. However,
H
ove
erall Mail revenue grew
w 6.6% to S$
$123.4 millio
on in the qua
arter,
attributed
d to the in
ncrease in regional e--commerce transhipment businesss and inorg
ganic
improvem
ment in direc
ct mail reven
nue from Samplestore which
w
was accquired in October 2013
3. For
the full ye
ear, Mail rev
venue rose 11.5%
1
to S$4
491.0 million
n.
Logistics revenue grew in Q4 by
y 9.9% to S$
$79.0 million
n on the basis of our reccent acquisittions.
Annual revenue
r
for Logistics grew
g
52.8% to S$368.5
5 million, w
with the full consolidatio
on of
General Storage Co
ompany and Famous Ho
oldings, which were acq
quired in Ja
anuary 2013
3 and
February
y 2013.
In Retail & e-Commerce, Q4 re
evenue was up 18.7% to S$22.0 million,
m
with growth
g
drive
en by
financial services and e-Comme
erce servicess. Revenue from
f
e-Commerce services continue
ed to
grow, offfsetting the loss
l
in contrributions from
m Clout Sho
oppe which w
was sold du
uring the qua
arter.
For the fu
ull year, Rettail & e-Commerce reven
nue increase
ed 3.5% to S
S$86.7 millio
on.
nd property--related inco
ome fell by 2
2.6% to S$10.9 million w
with lower co
ontributions from
Rental an
SingPostt’s propertiess. For the fu
ull year, it grrew 4.6% to S$44.9 million.
Total exxpenses forr Q4 increa
ased 3.8% to S$170.0
0 million, a
attributed to
o the continued
investme
ent in resou
urces for th
he Group’s transformattion, change in busine
ess model to a
diversifie
ed group an
nd growth in
n lower margin businesses. The Group ben
nefitted from
m the
exception
nal Governm
ment’s wage
e credit sch
heme which
h mitigated the increase in labour and
related expenses
e
du
ue to additio
onal headco
ount from th
he new subssidiaries. Fo
or the year, total
expenses
s rose 26.4%
%.
Net profitt increased 17.7% to S$
$30.7 million in Q4. For the
t full year,, net profit in
ncreased 4.8
8% to
S$143.1 million. Excluding one-o
off items, underlying net profit declin
ned 1.3% to S$31.4 million in
the fourth
h quarter, wh
hile for the fu
ull year, it increased 2.9
9% to S$145
5.0 million.
Dr Wolfg
gang Baier, SingPost’s
S
G
Group
Chieff Executive Officer
O
said: “The business environment
remained
d very challe
enging for us
u in the fou
urth quarter, with traditio
onal mail volumes in de
ecline
while lab
bour costs continued to
t escalate. We are fe
eeling the ffull weight of the Sing
gPost
Inclusivityy Fund whicch was launc
ched in February 2013 to
t help our lower-income staff cope
e with
the rising
g cost of living. Frontliners such as postmen
n received a significan
ntly higher wage
w
increase of 6% comp
pared to the 1.2% industtry average last year. Th
his year, we are expecting to
provide for
f more than 3% incrrease, to further boost the income
e of our low
w-wage worrkers.
While we
e are gratefu
ul for the Government w
work credit scheme, we
e are still un
nder tremendous
pressure from the unavoidable
u
labour costt increases. We continu
ue to be afffected by higher
terminal dues outpay
yments for international
i
l mail, which
h has been increasing 6%
6 year-on--year
under the
e new UPU terminal
t
due
es frameworrk.”
He adde
ed: “We arre glad tha
at the grow
wth in regio
onal e-comm
merce busin
ness, especcially
transhipm
ment, has he
elped mitiga
ate the declin
ne in traditio
onal postal b
business. We
e will continu
ue to
diligentlyy implement measures including prroductivity and
a
operatio
ons optimisa
ation to manage
costs.”
Continue
ed investme
ent in service quality a
and producttivity in Sin
ngapore
• Comm
mitted to oblligations as Public Posta
al Licensee (PPL)
• Inves
sting S$100 million to drive innovvation, produ
uctivity and customer service to bring
greatter value to customers
c
• Inves
stment inclu
ude advance
ed mail sorrting equipm
ment, an inttelligent alte
ernative dellivery
netwo
ork (POPSta
ations) and a higher cap
pacity three--wheeler flee
et which is also
a
safer fo
or the
postm
men
SingPostt will continue to invesst in the Sin
ngapore ma
arket to stre
engthen its capabilities and
enhance service qua
ality to meet its PPL ob
bligations an
nd the changing custom
mer needs. It
I will
continue to drive innovation, productivitty and cusstomer servvice as it acceleratess its
transform
mation over the
t next few
w years and bring
b
greaterr value to itss customers.
Said Mr Woo Keng Leong, Sing
gPost’s EVP
P/Head of Po
ostal Service
es: “One oth
her key obje
ective
of our invvestments iss to drive effiiciency and innovation, especially
e
w
with the chan
nging mail prrofile,
tight labo
our market and rising operating
o
co
osts. Of the S$100 milliion that we are investin
ng to
better se
erve the dom
mestic markket, about 60% is going
g into postal infrastructu
ure and nettwork
including
g an advancced mail sorrting system
m which is more
m
efficien
nt, a fleet off bigger-cap
pacity
three-wheelers whic
ch is also sa
afer for the postmen and
a
modernised, more convenient post
offices with
w 24/7 auto
o-lobbies prroviding all day
d access to
t key servicces. We are
e already run
nning
tests and
d pilots for alll these servvice measure
es and will ro
oll them out progressively”
Dr Baier added: “We
e are driving
g innovation at the Grou
up’s touchpo
oints to imprrove accessibility
and conv
venience forr the public.. A network of 100 POPStations (P
Pick or Post your Parce
el) is
expected
d by end 20
014, catering
g to the e-ccommerce landscape w
with an intellligent set-up for
parcel de
elivery, postting, paymen
nt and returrns. Leverag
ging of techn
nology such as mobile apps
also features strongly in our inve
estments. Th
he upgraded
d SingPost m
mobile app allows
a
customers
easy ac
ccess to information such
s
as tra
acking of their
t
shipme
ents, posta
age/shipping fee
calculatio
ons and pos
stal codes. Itt has never been as co
onvenient to find a post office, a po
osting
box or ch
heck how mu
uch it costs to
t send a pa
ackage oversseas.”
Good prrogress in trransformatiion program
mme
• Furth
her progresss on end-to-end e-com
mmerce logis
stics capabilities and network
n
in Asian
A
markets, with ove
er 600 e-com
mmerce custtomers
• Integration of new
w M&As progressing
• Increased revenu
ue contributions from reg
gional marke
ets
SingPostt has made good progrress in its trransformation programm
me, having achieved
a
several
milestone
es over the past
p
two yea
ars.
Said Dr Baier: “Over the past tw
wo years, we
w have stre
engthened o
our logistics capabilitiess and
network in the region through strategic
s
acq
quisitions, pa
artnerships and joint ve
entures. With
h the
four key componentss in the e-co
ommerce log
gistics chain
n in place, S
SingPost is now
n
able to offer
fully integ
by the grow
grated end-tto-end solutiions for the Asian marke
et. We are encouraged
e
wth in
our e-com
mmerce cus
stomer base which now sstands at ov
ver 600, and includes glo
obal brands such
as adida
as, Toshiba and Canon.. We are making it very
y easy for A
Asian companies to expand
rapidly orr US and Eu
uropean com
mpanies to enter the boo
oming Asian consumer market
m
fast.”
The four key compon
nents in the integrated e
e-commerce logistics cha
ain refer to:
1) Transportation (aiir and sea fre
eight through Famous Holdings);
H
2) Wareh
housing fulffilment (warehousing a
and fulfilme
ent through Quantium Solutions, selfstorag
ge solutions through Loc
ck+Store);
3) Last mile
m delivery
y and return
ns (SingPosst mail and logistics, Q
Quantium So
olutions, reg
gional
assocciated compa
anies and JV
Vs); and
4) Web managemen
nt, marketin
ng and payyments (SP e-Commercce, offering of mono-b
brand
solutio
ons, omigo marketplace
m
and vPOST
T).
Dr Baier said: “From
m the onset of our tran
nsformation journey, we
e had set ou
ut to reduce
e our
reliance on the tradittional postall business and
a the dom
mestic marke
et. Mail reve
enue now makes
m
up 55.5%
% of overall revenue compared to 62.9%
6
last year.
y
Throug
gh our strategic acquisiitions
and inve
estments as well as organic growth
h in QS, ourr regional re
evenue has grown to almost
28% of total
t
revenue
e compared
d to 19% a yyear ago. e--commerce related contributions accross
the Group are estima
ated to make
e up about 2
26% of Group revenue.”
He added
d: “We will continue to strengthen our
o new bussinesses and
d operationss, and extend
d our
reach into the regio
onal marketts. This includes ensurring the succcessful integration of new
subsidiarries into the Group and working
w
with
h our partnerrs and regional associatted companies to
extract synergies and growth. We
W will focu
us on executtion to creatte greater sh
hareholder value
v
and a sustainable futture for all sttakeholders..”
During th
he year, the Group rece
eived local a
and international recogn
nition for its business effforts
and labour practices. These inclu
ude:
-
-
The EMS Co-op
perative Golld Level Pe
erformance award
a
for 2013
2
for Sp
peedpost se
ervice
makin
ng SingPostt the only co
ompany to w
win the Univ
versal Posta
al Union’s EMS
E
Cooperrative
award
d for its Spe
eedpost courrier service e
every year since 2001;
The 2014
2
Specia
al Mention for
fo Outstand
ding Workpla
ace for Matu
ure Workers by the Tripa
artite
Allian
nce for Fair and
a Progresssive Employyment Practiices (TAFEP
P);
The 2014
2
May Day Medal off Commenda
ation; and
The World
W
Mail Award
A
2013 for People M
Management by the UPU
U.
Dividend
ds
The Board of Directo
ors is recom
mmending a ffinal dividend of 2.5 cen
nts per share
e for FY2013
3/14.
Togetherr with the intterim dividend paymentts of 1.25 ce
ents per sha
are for each of the first three
t
quarters of the finan
ncial year, th
he proposed
d total divide
end for FY20
013/14 would be 6.25 cents
c
per share
e. The final dividend,
d
to be paid on 1
18 July 2014
4, is subject to shareholders’ approvval at
the 22nd Annual
A
General Meeting
g.
End
About Sin
ngapore Pos
st Limited
(Reg. No. 199201623M
M)
Singaporre Post Limitted (SingPos
st) is the natio
onal postal se
ervice provide
er in Singaporre offering tru
usted
communications thro
ough domestic and interna
ational postal services as well as end-to end integ
grated
mail solutions covering
g secure data printing, lette
er-shopping, delivery and mailroom ma
anagement, am
mong
others. Ass the trusted communications service provider for more
m
than 15
50 years, Sin
ngPost today goes
beyond physical
p
posta
al communiccations to offfer secure digital commu
unications solutions as pa
art of
integrated
d solutions to its customerss.
With its co
ompetencies in mail, logisttics and e-com
mmerce, Sing
gPost is able to offer integrated ecomm
merce
logistics solutions taiilored to custtomers’ need
ds. Having on
ne of the larrgest multi ch
hannel distrib
bution
networks in Singapore, regional ope
erations in 12
2 countries an
nd access to a global posta
al network of more
erritories, Sin
ngPost is alsso well-positioned to pro
ovide end-to--end e-comm
merce
than 220 countries/te
logistics solutions
s
such
h as warehou
using, pick an
nd pack, delivvery and returns managem
ment for B2B,, B2C
and B2B4
4C customers
s in Singapore
e and the region.
SingPost was ranked the
t top postal agency in a
an Accenture report in Marrch 2013. Sin
ngPost also ga
ained
internation
nal acclaim when
w
it was bestowed th
he Service Provider of the
e Year 2012
2 award by Postal
P
Technolog
gy Internation
nal.
SingPost was listed on
o the Main Board of the Singapore Exchange in 2003. To learn more a
about
SingPost, please visit www.singpos
t.com.
w
~~~~~~~~~~
Fo
or general information on SingPost, call 1605
5 toll-free
or visit www.singpost
w
t.com