Sing Post: more e-commerce, higher cost
In its fiscal mid-year ending 30 September 2020 Singapore Post Limited increased its revenues by 9.6% to SGD 708 million (USD 525 million). Besides growth in the post & parcel and logistics segments, the strong rise of e-commerce volume across the group paved the way to this improvement.
However, profit on operating activities declined by a significant -50.9%, as the group incurred higher costs on e-commerce volume growth, exacerbated by Covid-19 related disruptions, e.g. the escalation of cross-border conveyance costs as a result of flight disruptions. Correspondingly, net profit declined by -40% to SGD 31.5 million (USD 23.4 million).
E-commerce revenue now stands at 32% of all domestic post & parcel revenues, up from 18% the previous year. In the international post & parcel business, cross-border e-commerce volumes were largely resilient. (sh)