The 3 new acquisitions under PAG drove Pos Malaysia’s revenue up by 47.1% in 1Q18
By ALIFAH ZAINUDDIN / Pic By ISMAIL CHE RUS
POS Malaysia Bhd expects revenue from its logistics and aviation business to almost double to RM600 million on higher returns from the company’s coal-transporting business for the financial year 2018 (FY18).
Group CEO Datuk Mohd Shukrie Mohd Salleh expects “no less than RM600 million” from the segment in FY18, as the contract to transport coal between TNB Fuel Services Sdn Bhd (TNBF) and its indirect subsidiary PNSL Bhd moves into full swing.
Following its acquisition of two second-hand bulk carriers for US$32.9 million (RM141.47 million) to transport coal from various countries into ports in Malaysia, contribution from its logistics and aviation business is expected to increase considerably from its 15.7% revenue input of RM327.6 million in FY17.
Pos Malaysia said PNSL, a wholly owned subsidiary of Pos Logistics Bhd, was awarded two 10-year contracts by TNBF in July last year for a cumulative value of up to US$194 million for the entire period.
Prior to the acquisition of the two used vessels, PNSL used chartered vessels to transport the coal.
Additionally, Pos Malaysia anticipates a full-year contribution from its triple acquisition of KL Airport Services Sdn Bhd, Konsortium Logistik Bhd and Pos AsiaCargo Express Sdn Bhd to further boost the group’s income.
The three new acquisitions, collectively branded under Pos Aviation Group (PAG), drove the company’s revenue up by 47.1% to RM611.6 million for the first-quarter ended June 30, 2017 (1Q18). The new division contributed RM164.4 million to Pos Malaysia’s revenue for the quarter.
Despite the promising performance, Mohd Shukrie said he expected higher returns from PAG in 1Q18.
“I want more, I believe they should be able to do more. Having said that, of course they faced constraints on the distribution hub for the Digital Free Trade Zone, which they have invested a lot of money into — so obviously for the short-term there is no return from that.
“But, it will be exciting going forward. I am looking at better numbers for PAG,” he told reporters after the company’s AGM in Shah Alam yesterday.
The postal services — a unit of conglomerate DRB-Hicom Bhd — saw its net profit and revenue up by 19.1% and 47.1% year-on-year from higher logistics and courier contributions.
For 1Q18, Pos Malaysia saw its earnings improved to RM37.91 million from RM31.84 million a year ago, while turn-over jumped to RM611.63 million from RM415.87 million.
“The revenue growth in 1Q of our financial year was largely driven by the inclusion of revenues from PAG as part of our strategy to transform the Pos Malaysia Group to become a fully-integrated logistics services provider in the e-commerce ecosystem,” Mohd Shukrie said.
Pos Malaysia shares ended 3.8%, or two sen higher yesterday at RM5.51, with 1.8 million shares exchanging hands, giving it a market capitalisation of RM4.3 billion.