A one-off gain from a property sale helped Singapore Post post a 183.7% rise in first-half net profit to S$55.9 million, beating market expectations.
SingPost released its unaudited financial results for the first half of its 2026/27 financial year, which ended on 30 September 2026, before the market opened on Friday (6 November). The group recorded a one-off gain of S$43.1 million from the sale and leaseback of 10 HDB post office shophouses during the first half.
Excluding non-recurring items such as exceptional gains, the group’s underlying net profit grew 107.5% year on year to S$11.5 million, mainly reflecting improved operating efficiency and a S$3.5 million write-back of tax provisions from earlier periods.
The board declared an interim dividend of 0.15 cents per share, up from 0.08 cents in the corresponding period of the previous financial year. The payout represents 30% of underlying net profit and is expected to be paid on 4 December.
The group’s total revenue edged down 1.3% to S$185.9 million amid a structural decline in traditional letter mail volumes and a contraction in its international business.
However, strict cost controls significantly improved the group’s profitability, with first-half operating profit rising 42.3% year on year to S$8.1 million.
Cash flow and liquidity also improved substantially. Greater operating efficiency helped net cash flow from operating activities turn positive at S$5.9 million in the first half, compared with a net outflow of S$28.1 million a year earlier.
As of 30 September, the group had S$539 million in cash and cash equivalents and a net cash position of S$292.8 million, maintaining a sound financial position with ample liquidity.
Mark Chong, Chief Executive Officer of SingPost, said: “Our results reflect green shoots in the execution of our strategy. However, the operating environment continues to be challenging. Amid structural letter mail declines and cross-border headwinds, maintaining operational discipline is key.”
Chong said at a results briefing on Friday morning that SingPost was discussing the possibility of easing regulatory requirements with the Infocomm Media Development Authority (IMDA), to allow greater flexibility in managing the operating costs of its regulated business. SingPost will announce more details once the arrangements are finalised.
SingPost is regulated by IMDA under the Postal Services Act and postal quality of service standards. Under IMDA’s delivery standards for local basic letters, at least 99% of such letters posted before collection cut-off times must be delivered by the next working day to addresses in the Central Business District and designated urban and commercial areas.
SingPost must also maintain a certain density of posting boxes to ensure that residents and businesses in residential and commercial areas can find one within about 300 to 500 metres of their homes or business premises.
Chong also said that refurbishment plans were being drawn up for SingPost Centre. The works are expected to begin next year and take about two years, with capital expenditure currently estimated at no more than S$30 million.
SingPost is also proceeding with plans to optimise its network, aiming to move from its current 40 branches and 40 self-service lobbies to 30 branches and 50 self-service lobbies by the end of March 2027.
The 10 branches slated for closure will be converted into round-the-clock self-service lobbies, retaining 24-hour postal services. The space freed up will be leased out to generate rental income.
