Pos Malaysia sinks deeper into the red

Pos Malaysia saw its postal segment dragging down its overall financials.

PETALING JAYA: Pos Malaysia Bhd saw its net loss widen to RM121.84mil in its second quarter ended June 30, 2021 (Q2’21) from RM19.02mil in the same quarter a year ago.

The group in the notes to its financial statements said losses were mainly due to lower revenue by RM35.4mil, the higher cost of sales and operating expenses by RM55.4mil and higher impairment charges of property, plant and equipment by RM43.6mil.

During the quarter in review, Pos Malaysia’s revenue slid to RM533.89mil from RM606.08mil in Q2’20.

Net loss per share widened to 15.57 sen from 2.43 sen a year ago.

Among the stronger operating segment was the logistics segment which registered higher revenues rising by 32% in the half year to date period, it said.

“The increase is mainly from freight management business (especially from freight forwarding) and automotive business largely from the local automotive production volume and commencement of a new warehouse,” the group said.

“The logistics segment managed to register profit before tax in this current period which saw all businesses from automotive, marine and freight management recording improved profitability compared to the corresponding period last year,” it added.

Pos Malaysia saw its postal segment dragging down its overall financials.

It said that the decrease of revenue in postal segment by 9% is primarily contributed by the drop in postal services following the decrease in mail and parcel volume handled especially from contract customers.

“Apart from the lower revenue generated, higher loss registered for the postal segment was contributed by impairment of property, plant and equipment and higher transportation and delivery costs that were incurred,” it noted.

Moving forward, the group said the lockdowns continues to pressure its postal segment with a 20% decline in mail business as a result of multiple operational limitations rising from stricter standard operating procedures for bulk mailers and financial institutions.

“We foresee that the migration to digital alternatives and continuation of movement restrictions will continue to depress mail volumes further,” it said.

Meanwhile, for its courier business, Pos Malaysia said it had registered a 17% decline in volume since the closure of physical outlets by its contract customers had contributed to this decline.