GDex managing director and group chief executive officer Teong Teck Lean said the deal was a leap forward for the GDex group to venture into the retail delivery network.
KUALA LUMPUR: GD Express Carrier Bhd's earnings fell to RM6.59mil in the second quarter ended Dec 31, 207 from a year ago on higher taxes though at the pre-tax and revenue levels, it had performed better.
It said on Thursday, the earnings were down 28.3% from RM9.25mil a year ago due to higher tax of RM5.43mil cpompared with 1.66mil. Earnings per share were 0.12 sen compared with 0.17 sen.
Revenue was up 15.6% to RM76.46mil from RM66.25mil a year ago mainly driven by higher business volume on the back of higher demand of the courier services for e-commerce business.
Consequently, group profit before tax (PBT) increased 10.7% to RM12.02mil from RM10.86mil.
“Better revenue and PBT were mainly due to positive sales growth, as a result of higher demand of express delivery for e-commerce business,” it said.
GDex said revenue reported in courier services increased 14.4% to RM74.82mil from RM65.38mil while PBT increased 4.3% to RM11.81mil from RM11.32mil.
As for the logistics sector, the improved performance was mainly due to increase in demand of warehousing services for customers during festive seasons. Its revenue increased by 114% to RM1.64mil from RM766,000 while its PBT was
RM208,000, which was a turnaround from the pre-tax loss of RM463,000.
For the first half, its earnings fell 16.3% to RM14.48mil from RM17.30mil in the previous corresponding period. Its revenue was higher by 16.9% to RM145.22mil from RM124.16mil.
On the outlook, GDex said it remained optimistic and expected to make steady progress in performance due to the growing popularity in e-commerce business.
“Nevertheless, the group continues to expect more intense competition in the express delivery industry, with some impact on its business margin,” it said.
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