Singapore Post (S08) Q3 2025 earnings summary

Executive summary

• Group revenue rose 12.1% year-over-year to S$510.6 million in Q3 FY24/25, driven by strong performance in Australia and property leasing, offsetting softer results in Singapore and International segments.

• Operating profit declined 23.8% year-over-year to S$21.1 million due to higher operating expenses, especially in Singapore and International businesses, amid inflation and supply chain challenges.

• The Group is focused on streamlining operations, enhancing digital capabilities, and pursuing new business opportunities.

Financial highlights

• Group operating margin fell to 4.1% from 6.1% year-over-year.

• Cash and cash equivalents decreased 17.9% since March 2024, mainly due to capital expenditures, lease repayments, interest, and dividends.

• Borrowings increased 4.8% due to additional loans for the Border Express acquisition.

• Net debt position worsened by 35.7% to S$475.4 million.

Outlook and guidance

• The Board plans to divest non-core businesses, with the proposed sale of the Australia business at an enterprise value of A$1.02 billion pending shareholder approval.

• Strategy will be reviewed post-divestment; property business expected to remain stable with benefits from rental revisions.

• International cross-border business faces ongoing challenges from global trade disputes, geopolitical conflicts, and regulatory changes.