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Thursday, February 23, 2017

Pos Malaysia's 3Q profit up 55%, thanks to popularity of online business


By Sangeetha Amarthalingam / theedgemarkets.com | February 23, 2017 : 7:06 PM MYT

KUALA LUMPUR (Feb 23): Pos Malaysia Bhd's net profit soared 55% to RM34.8 million, or 4.45 sen per share, for the third financial quarter ended Dec 31, 2016 (3QFY17), thanks to the courier segment's higher contribution to the postal group's bottomline.

The group registered a net profit of RM22.5 million, or 4.19 sen per share, in 3QFY16.

Quarterly revenue climbed 28.5% to RM635.7 million from RM494.6 million a year ago. The group attributed the higher revenue to a contribution of RM169.3 million from logistics business pursuant to the acquisition of Pos Aviation Sdn Bhd (formerly known as Kuala Lumpur Airport Services Sdn Bhd).

According to a filing with Bursa Malaysia today, the group's courier segment registered higher revenue by RM102.7 million compared to RM408 million in 3QFY16, driven by a surge in demand from the e-commerce and online business.

Postal services revenue fell due to net drop in traditional mail volume and lower transaction from retail segment from commercial private section for unit trust.

International segment revenue slipped because of transshipment revenue decline.

For the cumulative nine months period ended Dec 31, 2016 (9MFY17), net profit surged 50.6% to RM73.4 million or 11.56 sen per share, from RM48.7 million or 9.08 sen per share in the previous corresponding period. Revenue expanded 12.7% to RM1.4 billion from RM1.3 billion a year ago.

In a separate statement, its group chief executive officer Datuk Mohd Shukrie Mohd Salleh said the postal group's efforts to transform itself into a one-stop integrated logistics services provider is on track.

"(We) are expected to be fully e-commerce ready by middle of 2017 when we would be able to offer more a comprehensive suite of e-fulfilment services including cash on delivery payment options and warehousing, and pick and pack services," he said.

For the moment, he said the postal group would continue to drive innovation in the e-commerce industry by providing market-oriented solutions such as 'FlexiPrepaid'.

"Pos Malaysia will continue to develop such e-commerce products for the benefit of both merchants and consumers," Mohd Shukrie added.

The improved earnings may explain the steady rise on the postal group's share price, which has climbed from the low of RM2 in March last year to RM4.41 today.

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