SingPost Q1 operating profit up 55.2% to S$4.1 million on improved costs

Singapore Post (SingPost) reported a significant increase in its operating profit for its first quarter ended June 30, 2026, reaching S$4.1 million, a substantial 55.2% rise from S$2.6 million in the same period last year. The improvement was largely due to effective cost management, reduced labour-related expenses, and enhanced efficiency.

The company's operating profit margin expanded to 4.4% from 2.8% a year earlier, with the prior-year profit being restated from S$3.4 million to S$2.6 million following recent divestments. Despite a minor decline in revenue by 0.9% to S$93.4 million, revenue gains in the post office network and property assets segments largely offset the mixed performance in logistics and letters.

Within these segments, domestic parcel volume surged 36.5% year on year to 7.1 million items, helping to counteract the continued decline in mail volume and international business challenges. Meanwhile, domestic mail volume slipped 16.2% to 67.3 million items, which was partially offset by a postage uprate introduced in January 2026.

Operating expenses declined by 2.4% year on year to S$89.3 million. The company also invested S$30 million in an automated parcel sortation facility at its regional e-commerce logistics hub, aimed at reducing the cost to serve by more than 10%. In addition, the post office network segment benefited from increased transaction support services for Singtel Special Discounted Shares and higher rental yields from post office properties.

As of June 30, SingPost had S$664.4 million in cash and cash equivalents, and a net cash position of S$314.7 million, bolstered by a S$52.8 million inflow from the sale of 10 Housing & Development Board post office shops.