Pos Malaysia's 4Q down near 28% on higher transportation cost

by **Cals** Tue 24 May 2016, 02:00

Pos Malaysia's 4Q down near 28% on higher transportation cost

By Chester Tay / theedgemarkets.com | May 23, 2016 : 9:14 PM MYT

KUALA LUMPUR (May 23): Pos Malaysia Bhd's net profit for its fourth quarter ended March 31, 2016 (4QFY16) fell 27.89% to RM14.35 million from RM19.9 million a year ago, mainly on higher transportation cost for its transhipment business, and higher recognition of expired postal order in the previous year's corresponding quarter.

Quarterly revenue, however, rose 9.63% to RM433.64 million from RM395.54 million in 4QFY15.

For the full year (FY16), Pos Malaysia's net profit halved to RM63.09 million from RM127.05 million, as profitability was affected by higher staff and transportation costs.

Revenue, meanwhile, grew 14.95% to RM1.72 billion from RM1.49 billion, due to strong growth in its international and courier business.

In the short to medium term, Pos Malaysia said its prospects are mainly driven by the expected growth in its courier, express and parcel business segments due to the continued expansion of the e-commerce industry.

"Increased online and mobile purchases have resulted in higher demand for e-commerce logistics, including courier services. Pos Malaysia plans to enhance its presence in other areas of the e-commerce value chain in light of the future growth potential in e-commerce," it said.

"Nevertheless, the expected softer global economic condition is a key risk factor that may adversely impact Pos Malaysia's prospects going forward," the group added.

In a separate statement, Pos Malaysia said it aspires to transform itself into an integrated logistics services provider through its acquisition of Kuala Lumpur Airport Services Sdn Bhd (KLAS), to tap into the expected higher trade volumes within ASEAN, as well as through the implementation of the Trans-Pacific Partnership Agreement and the ASEAN Economic Community.

"This will enable Pos Malaysia to enhance and expand its market share in the face of foreign competition within the ASEAN region, which is expected to increase with the reduction and/or elimination of trade barriers for both goods and services and from improved trade linkages amongst member countries," the group added.

Pos Malaysia rose three sen or 1.08% to RM2.81 today, giving it a market capitalisation of RM1.51 billion.