5 Surprising Truths Buried in SingPost’s Latest Financial Report

When Singapore Post (SingPost) announced its latest half-year financial results, the headline figure seemed reassuring: a net profit of S18.4 million. In a challenging global market, this number suggests stability, a company holding its own against strong headwinds. But this bottom-line figure stands in stark contrast to the top line, where Group revenue fell 27.4% to S188.4 million, signaling significant turmoil in its core operations.

Digging into the detailed financial statements reveals a different picture entirely. The headline profit doesn’t reflect the health of the core business; instead, it’s propped up by one-off gains. The report paints a picture of a company undergoing a radical transformation—shedding major parts of its international business, leaning on an unexpected source of profit, and placing a major bet on a new domestic strategy.

These five truths, buried within the numbers, reveal a company fighting a two-front war: one against a collapsing international market and another for its own future identity.

1. The Profit Isn’t What It Seems

The most critical takeaway is the vast difference between the reported profit and the company’s actual operating performance. While the official Net Profit was S18.4 million, the Underlying Net Profit (UNP) was only S5.5 million. The gap is explained by S$13.9 million in “exceptional items”—primarily one-off gains from selling off parts of the business.

The more telling figure, the UNP, which strips out these one-time events to reveal the sustainable earning power of the core business, fell by a staggering 78.0% compared to the same period last year. This number provides a much clearer, and more sobering, view of the challenges facing SingPost’s day-to-day operations.

2. The Global eCommerce Engine Has Stalled—Hard

The culprit for this immense pressure is found in a single, stark statistic: cross-border eCommerce delivery volumes collapsed by 63% year-over-year.

This collapse had a direct and damaging impact. The “Logistics & Letters” segment, which accounts for 76.8% of the company’s total revenue, saw its own revenue fall by 33.1%. As a result, what was once a profitable division recorded an operating loss of S$4.4 million for the half-year.

3. Their Most Profitable Business Has Nothing to Do With Mail

In a surprising twist, while the core logistics and mail business struggles, SingPost’s “Property Assets” segment has emerged as a rock of stability and its most profitable division. This segment, which consists of rental income from properties like the SingPost Centre, recorded a solid operating profit of S$23.9 million.

Driven by strong rental demand, the Property Assets segment saw its revenue increase by 3.4% year-over-year. This strength is underscored by the SingPost Centre’s near-perfect overall occupancy rate of 99.2%. While revenue grew, its operating profit saw a slight dip to S23.9 million, down from S24.7 million in the prior period, a reminder that even this stable segment faces rising operational costs.

4. SingPost Is Shrinking to Survive

In response to the market headwinds, SingPost has embarked on a deliberate strategy of divestment. The company has been actively selling major assets, including its entire Australia business, its freight forwarding arms, and unwinding its complex cross-holdings with Alibaba, which involved the sale of its stake in 4PX and the cessation of the Quantium Solutions joint venture.

This is a strategic retreat designed to create a “leaner and more focused” company with a “stronger financial foundation.” A major outcome of this strategic withdrawal is a fortified balance sheet, with a very healthy cash position of S$594.1 million. This cash pile gives the company significant financial flexibility to navigate the current downturn and fund future investments.

As CEO Mark Chong, who assumed the role on November 1, 2025, stated in the company’s media release:

Our H1FY25/26 performance reflects the full impact of the streamlining of our business. This team has delivered a positive start to the first half, despite the persistent weakness in the global logistics and eCommerce sector. We will continue to invest in our infrastructure to further enhance our service levels, while managing our cost base.

5. They’re Placing a S$30 Million Bet on the Future

Despite the challenging environment, SingPost is not just cutting back; it’s also making a significant forward-looking investment. The company has committed S$30 million to expand its small-parcel sorting capacity, a move that is expected to triple its capacity for handling eCommerce volumes.

This investment isn’t happening in a vacuum; it is a direct and necessary response to the 63% collapse in cross-border volumes. SingPost is consciously reallocating capital from its struggling international arm to a domestic market where it believes it can win. Scheduled to be fully operational by mid-2026, this S$30 million bet shows SingPost is doubling down on the future growth of the domestic eCommerce market, retooling its infrastructure to win on its home turf.

Conclusion: A Company in Transformation

SingPost’s report is less a financial statement and more a declaration of strategy: retreat from the global stage to fortify the home front. Its rock-solid property portfolio buys it time and funds the war chest. But as the international storm rages on, the S$30 million question remains: can it build its new domestic fortress before the old one is washed away?

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