SingPost reports lower Q1 Profit due e-commerce Investments

Less than a month after SingPost announced the appointment of Sam Ang as chief executive of Quantium Solutions, the e-commerce logistics arm of SingPost, the Singapore postal operator reported first quarter profit dived 23% to
S$35.9 million (US$26.6 million) from the preceding year, due to a bigger operating loss from e-commerce, depreciation charges for its Regional eCommerce Logistics Hub, which will open next year, as well as loss of rental income arising from the SPC retail mall redevelopment.

Simon Ang, CEO Quantium Solutions - Courtesy: SingPost.
Simon Ang, CEO Quantium Solutions - Courtesy: SingPost.

Clearly, the reduced profit in 1Q was not related Mr Ang's appointment, but the results clearly show the level of massive investments needed to drive synergies and efficiencies between two of SingPost's important businesses - eCommerce logistics and freight forwarding.
Mr Ang heads up both SingPost's eCommerce logistics arm and freight forwarding operations as well as oversee SP Parcels, SingPost said in a release to Singapore Exchange last month. He has 35 years of experience in shipping, ocean-freight forwarding, air-freight forwarding and logistics management. He will report to Mervyn Lim, covering group CEO, until a new group chief executive officer is appointed.

As for SingPost's 1Q results ended June 30, revenue surged 30.9% to S$333.4 million from the previous year. The gain in revenue was due to continued growth in cross-border e-commerce-related activities, it said.

Nol van Fenema

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