Singapore Post still struggling to integrate its M&As, says report

Execution is everything for the Postman’s e-commerce shift.

While corporate governance issues have subsided for the Postman, M&A integration remains a concern for the firm.

According to a report by Maybank Kim Eng, the strength of its acquisitions will be tested in the third quarter of next year, their seasonally strongest quarter.

“A critical milestone will be 3QFY3/17 results, in our opinion. This is the peak period for e-commerce. In this period, the results of integrating its recent larger acquisitions and core earnings can be judged more clearly,” Maybank Kim Eng noted.

Meanwhile, the report added that execution is the main risk in ensuring that all the M&As work.

“The board also highlighted that M&A integration could take a number of years to contribute substantially to the bottom line,” the report said.