Less net loss for Pos Malaysia in 2T

PETALING JAYA: Pos Malaysia Bhd reported a lower net loss of RM5.25 million in the second quarter ended June 30, 2022 (2Q22) compared to a net loss of RM121.84 million in 2Q21. This is due to the efficient management of costs and the reduction in staff costs resulting from the exercise of the Mutual Separation Scheme (MSS).

In a filing with Bursa Malaysia, the local postal delivery service provider said its cost management efforts resulted in lower transportation and delivery costs in fiscal 2022.

The MSS put in place has also made it possible to reduce staff costs. Apart from this, Pos Malaysia’s efforts to increase product yield resulted in an increase in average revenue per item in the quarter.

2Q22 revenue fell 3% to RM517.26 million from RM533.9 million last year, while loss per share was 0.67 sen from 15.57 sen previously.

For the first six months of 2022 (1H22), Pos Malaysia recorded a lower net loss of RM35.62m compared to RM168.63m last year, while revenue decreased by 11.3% to RM1 billion from RM1.13 billion previously.

This can be explained in particular by the 17% drop in revenues from the group’s postal segment. This is influenced by the fall in the group’s courier business, held back by the fall in the volume of parcels, in particular from customers under contract.

Another factor was Pos Malaysia’s logistics segment revenue decline of 15% to RM158.6m in 2Q22 from RM187.4m last year.

The decrease is mainly from the group’s freight management business due to high demurrage and detention charges amounting to RM19.1 million.

Additionally, the aviation segment recorded higher revenue at RM121 million compared to RM100.99 million in the previous year.

This was largely due to the increase in cargo tonnage handled and the increase in the number of flights which led to increased ground handling revenue in 1H22.

Pos Malaysia also attributed the HY22 results to its “others” segment which recorded RM65.1 million in revenue during the period, an increase of 22% from HY21, mainly driven by sales of Ar -Rahnu.

Going forward, the group expects the consumer environment in 2H22 to be more challenging.

He said he would focus on delivering a profitable parcel and retail business. Pos Malaysia will also transform its core business and optimize margin-driven businesses.

Ann J. Cox