SINGAPORE Post (SingPost) has completed its strategic review, less than a year after it was initiated in May 2023.
On Tuesday (Mar 19), the group announced that its board has approved five growth drivers or “strategic thrusts” to be executed over the next three years, including the adoption of a new payout scheme.
Firstly, the group will be reorganised into three business units: Singapore, Australia and International. Such a revised corporate structure “creates flexibility and facilities future optionalities”, it said.
“Each business unit will have the agility and empowerment to operate in their own markets, to develop market leadership and build on their core capabilities according to their individual strategies. This provides clarity on the valuation of the individual businesses against comparable market and sector ratings.”
Next, the group targets for each of these business units to generate a spread above the cost of capital.
To do so, it has identified a list of its non-core assets and businesses – including selected properties and various international assets – which may be monetised for capital recycling.
SingPost will also endeavour to pay out 30 to 50 per cent of its underlying net profit from FY2024 to FY2025. It said the board views such a policy as “balanced” in view of the group’s capital requirements and delivering “sustainable returns” to shareholders.
The other three “strategic thrusts” identified by the group comprise transforming urban logistics and deliveries in Singapore, achieving scale in Australia, and leveraging its asset-light model and fourth-party logistics platform to serve cross-border customers.
Group chief executive Vincent Phang said the company will focus on executing these new growth drivers to “create market leadership, orientate to growth and generate shareholder value”.
Shares of SingPost closed flat at S$0.38 on Monday.
