Pos Malaysia reaps RM37m Q2 profit

Pos Malaysia Bhd's pre-tax profit for the second quarter ended June 30, 2011 rose to RM36.965 million from RM34.678 million in the corresponding quarter of 2010.

Revenue was higher at RM286.854 million from RM229.122 million previously, it said in a filing with Bursa Malaysia today.

For the half year, its pre-tax profit rose to RM85.664 million from RM44.096 million in the corresponding period of 2010, while revenue increased to RM591.363 million from RM460.201 million previously.

It said the group registered an impressive growth of 107.3 per cent in operating profit of RM86.3 million (2010: RM41.6 million) for the half year period, citing the domestic tariff increase commencing July 1, 2010 coupled with the benefits realised from transformation initiatives as factors.

This was supported by a revenue of RM591.4 million; a substantial increase of 28.5 per cent from RM460.2 million in the preceding year, it said.

Pos Malaysia said although its Courier and Retail segments revenue recorded an overall increase; the profit performance of these segments were impacted by salary increase of staff effective July 1, 2010 as the company decided to increase the salary of staff company-wide as its salary was lower than market.

The salary increase was implemented immediately following the domestic tariff increase, it added.

The company expects performance for the year to be favourable with the new tariff structure for its regulated mail products and the ongoing transformation initiatives.--Bernama