By SHAHEERA AZNAM SHAH / Pic By MUHD AMIN NAHARUL
POS Malaysia Bhd, which changed its financial year end to Dec 31 last year, recorded a revenue of RM1.68 billion for the nine months ended Dec 31, 2019, compared to RM1.76 billion reported the year before.
It registered a net loss of RM215.58 million for the same period against a net loss of RM24.62 million the year prior, mainly on a goodwill impairment of RM90.6 million for Pos Logistics Bhd and the aircraft redelivery cost of RM28.6 million.
The continuous double-digit decline in mail volume with pre-revision postage rates was the biggest contributor to the overall loss from operations, it said.
For the October to December 2019 period, the group’s net loss widened to RM171.14 million from a net loss of RM13 million reported a year earlier, dragged by its postal services, courier and international segments.
Revenue for the three-month period fell 3.7% to RM559.58 million from RM581.24 million the year before, it said in a statement yesterday.
The group’s postal services division’s revenue for the quarter slipped 12.6% to RM152.51 million from RM174.52 million previously due to the continuous structural declines in traditional mail volume following the emergence of digital substitution.
Revenue from the courier segment dropped 6.1% to RM194.47 million from RM207.13 million the year before, contributed by lower customer volume due to the malware attack in October 2019, overall decline in consumer spending and intensified competition offering lower pricing.
International revenue fell 11.9% to RM34.59 million in the quarter from RM39.28 million previously due to the drop in volumes handled.
Meanwhile, the logistics division saw revenue growing 11.3% to RM78.74 million from RM70.74 million, contributed by the haulage and automotive logistic service.
The aviation segment witnessed revenue dropping 0.5% to RM74.6 million from RM74.2 million, mainly contributed by higher tonnage of cargo handled.
Pos Malaysia group CEO Syed Md Najib Syed Mohd Noor said the firm’s recently revised postage rates would contribute towards improving its finances to support the increasing costs in serving the Universal Service Obligations (USO).
“Pos Malaysia is set to embrace digitalisation to boost efficiency in order to take on higher courier volume and enhance customer experience, as well as catering to the booming e-commerce market.
“Our transformation strategy requires investments across our business value chain to further provide a much better customer experience to stay at the forefront of our competitors,” he said in a statement yesterday.
Moving forward, the firm is focusing its efforts towards revenue growth in line with the rapid e-commerce boom, while embarking on operational efficiencies to improve its cost structure in the long run.
“Pos Malaysia’s transformation continues in 2020 towards achieving financial sustainability, while serving its USO in an increasingly competitive business landscape.
“Among the initiatives to support this goal are promoting the adoption of the online shipping platform SendParcel and the revamped Pos Mobile App, expanding the courier touchpoints through agent outlets, and improving the utilisation of parcel lockers across 250 locations nationwide,” the group said.
While the firm is scaling up its courier business, it is also investing in the retail and core systems, including the track and trace functionality, to improve customer experience.
“On top of the modernisation of its information and communications technology (ICT) architecture and security, investments in parcel-sorting automation will further reduce processing costs while increasing efficiency, capacity and speed.
“Our two main subsidiaries are refocusing and rationalising the non-core segments, while expanding its product and service port- folios,” it said.
In maintaining its relevance in the current market conditions, Pos Malaysia has allocated RM300 million for the next several years in an effort to digitalise its core systems.
“The digitalisation of Pos Malaysia is key in ensuring the organisation maintains its relevance in today’s ever-changing environment.
“The group recently launched a new track and trace system and the modernisation of ICT architecture, which will improve operational efficiency as it scales up its courier business,” it said.