ComfortDelGro posts 19% rise in Q1 net profit to S$48.3 million

[SINGAPORE] Transport behemoth ComfortDelGro posted a 19 per cent rise in its net profit of S$48.3 million for the quarter ended March on contributions from last year’s acquisitions and improved margins.

It said in an update for the first quarter of FY2025 published on Wednesday (May 14) that revenue rose 16.4 per cent year on year to S$1.2 billion, whereas operating costs climbed at a slower pace of 15 per cent.

The mainboard-listed company was confident that its cabbies would not jump ship to Grab. At the Apr 22 annual general meeting, the transport operator’s group chief executive Cheng Siak Kian sought to assure shareholders about the loyalty of its own taxi drivers.

Grab obtained a taxi operator licence in April. Cheng said the award to Grab to increase the taxi fleet size in Singapore was not unexpected. He added that ComfortDelGro cabbies would recognise the value of the company’s ecosystem, including quality of vehicles and support and fuel discounts, and stay on for quality of the drivers’ support and security.

Cheng noted that the greater concern to the taxi operator is the shortage of taxi drivers, adding that there are talks with the regulators to level the playing field between the taxi and the private hire industry, and ensure sustainability of earnings for the taxi drivers.

In its update, the transport group commented that overseas contributions accounted for more than half the total revenue for the first time in its history; its acquisitions in Europe and Australia drove up foreign contributions to 52.6 per cent from 43.3 per cent in the year-ago period.

Revenue from Singapore was lower, contributing 47.4 per cent, after the Jurong West bus package was handed over to a new operator late last year.

However, the local business was responsible for 60.2 per cent of the group’s operating profit, and benefited from cost control and internal efficiencies, ComfortDelGro said.

By segment, public transport earned a higher operating profit of S$36.7 million for the group, up 52.9 per cent from S$23.8 million.

ComfortDelGro’s taxi and private hire reported an 11.9 per cent rise in operating profit to S$32.1 million, while other transport swung to an operating profit of S$700,000 from an operating loss of S$1 million.

Car and non-vehicle inspection and testing services generated S$9 million in operating profit, up 8.4 per cent, while other segments reported a 150 per cent surge in operating profit to S$3 million.

ComfortDelGro shares were 0.7 per cent or S$0.01 lower at S$1.52 on Wednesday, before this business update was published.