By Amanda Lee
Singapore Post shares slid after the company reported a sharp drop in underlying profit and warned of trade headwinds for the logistics business.
The stock fell as much as 12.5% to 56 Singapore cents in Thursday morning trade before paring losses to 10%. That put shares on track for their biggest one-day percentage loss since December.
SingPost, which provides postal and e-commerce logistics services across Asia-Pacific, said earlier Thursday before market open that underlying net profit for the fiscal year ended March 31 fell 40%.
Full-year revenue fell 7.5% to S$813.7 million, equivalent to US$625.2 million.
However, net profit more than tripled to S$245.1 million, mainly due to a one-off gain from the sale of the Australia logistics business.
Looking ahead, SingPost said the global economic outlook remains clouded by ongoing trade tensions after the imposition of U.S. tariffs and retaliatory measures by key trading partners.
This has disrupted international trade flows, creating greater volatility in supply chains and weakening global economic forecasts, the company said.
"In the logistics sector, the impact has been particularly pronounced," SingPost said, noting that cross-border logistics volumes have come under pressure.
Geopolitical tensions have also led to a more uncertain and challenging operating environment, it added.
These challenging conditions intensified in the second half of the fiscal year and are expected to persist in the new financial year, SingPost said.
Write to Amanda Lee at amanda.lee@wsj.com
(END) Dow Jones Newswires
May 14, 2025 23:31 ET (03:31 GMT)
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