PETALING JAYA: Freight Management Holdings Bhd remains cautious over its prospects for the current financial year despite posting improved second quarter earnings from an increase in business activities.
Citing the Covid-19 outbreak, the logistics and freight services provider anticipates a geographically broad-based slowdown in global trade and supply chain.
“The overall impact on the economy will, however, depend on the duration and spread of the outbreak.
“Notwithstanding the challenges, the Group remains focus in our business and will continue to expand its customer base regionally and improve its cost management via operational efficiencies,” it said in a Bursa Malaysia filing.
In 2Q’FY20, the group recorded a net profit of RM4.12mil, which was 4.5% higher than in the previous corresponding quarter despite continued losses from a tug and barge associate.
Revenue for the quarter was 8% higher year-on-year (y-o-y) at RM148.44mil with the a 29% jump in revenue contribution coming from the group’s 3PL and warehousing and distribution segment.
The group also posted improvements in contribution from its seafreight, landfreight and supporting services of 5%, 8% and 18% respectively.
Its airfreight business however experienced an 8% fall in revenue to RM15.1mil.