Singapore Post has hailed the success of its transformation programme after a year in which revenue grew 12 per cent, and said that its innovation “will only intensify” to capitalize on the global growth in ecommerce.
The company has been working to counter the impact of declining domestic letter volumes by diversifying its revenues and turning itself into an e-commerce logistics powerhouse for the Asia Pacific region.
Last year revenue grew to S$919.5m ($695.4m) in the 12 months up to the end of March 2015.
Growth stemmed from the region’s booming e-commerce industry, but also SingPost’s series of recent acquisitions.
The company had a strong final quarter of the year when revenue grew 28.7 per cent compared to the same period a year before, to S$248.7m ($188m), with the quarter’s underlying profit up 14.9 per cent year-on-year to S$41.1m ($31m).
The year saw SingPost investing S$224.2m ($169.5m) in its e-commerce logistics business, along with acquisitions and its mail infrastructure.
SingPost said after investing in acquisitions, its new Regional eCommerce logistics hub and an expansion in its parcel locker network, along with continued improvements in its domestic mail sorting system, it is expecting to see further growth in years ahead.
Further acquisitions are also likely, the firm said, as it looks to build scale and secure “first-mover advantage” in the industry.
Dr Wolfgang Baier, the SingPost chief executive, said, “The pace of innovation driven by global ecommerce mega-trends will only intensify. By building our international network and transforming the mindset of everyone at SingPost is how we will create long-term value for our customers and our shareholders.”