Pos Malaysia narrows losses in first quarter

Pos Malaysia said the postage rate increase is projected to add annual revenue of between RM100mil and RM150mil for the mail business compared to the previous year.

KUALA LUMPUR: Pos Malaysia Bhd narrowed its losses in the first quarter on higher postal rates and a booming parcel delivery business.

Net losses in the three months ended March 31 was RM49.2mil compared with RM141mil a year ago, the company said in a statement. Revenue fell 6.1% to RM558mil.

Pos Malaysia said the postage rate increase is projected to add annual revenue of between RM100mil and RM150mil for the mail business compared to the previous year.

“Pos Malaysia’s ongoing transformation continues to make progress, with the postal segment achieving improved gross profit as the company begins to realise the benefits of its operations improvements, cost efficiency and business focus initiatives, ” group chief executive officer Syed Md Najib said.

“E-commerce has and will continue to drive our courier segment.” he added.

The average daily parcel volume recorded in April 2020 was about 590,000, a 69% increase compared to March 2020 and a 66% rise compared to February 2020.

“The group expects this trend to continue as more consumers adapt online shopping as the new norm, ” he said.