Pos Malaysia Berhad (Pos Malaysia) today announced a revenue of RM594.7 million for the fourth quarter of this financial year, a decrease of 8.9% compared to its revenue of RM653.1 million recorded in the corresponding quarter last year.
FOR the full financial year, revenue was RM2.36 billion compared to RM2.47 billion last financial year, a decrease of 4%. This decrease was mainly due to continued weak Mail, International and Logistics business performance at Pos Malaysia and Pos Logistics.
For the full year, profit before tax plunged from RM117.3 million to a loss before taxation
of RM158.4 million, which the group attributed mainly to widening losses from mail and
impairment charges of RM39.6 million from the loss of goodwill in Pos Logistics.
This losses from mail is a result of continuing double digit contraction in mail volume and bill payments reflecting the increasing substitution of letters with electronics media.
The impairment of goodwill in Pos Logistics is a result of performance that is below
expectations due to competitive market conditions.
“The loss was a result of the continuing decline in our mail volume (13% year-on-year)
coupled with our high costs to serve the Universal Service Obligation (USO).
“We are working closely with the Regulator for an overall tariff rebalancing to update the tariff that was last change in 2010 accordingly to reflect the growing costs to serve the nation with an increase of 17% new postal addresses (8.9 million addresses recently compared to 7.6 million in the last five years).
“We expect a positive outcome from the Regulators on the tariff rebalancing. An impairment was also made for goodwill in Pos Logistics due to increasing competition which has resulted in performance that is below expectations.
This impairment is a one-off expense.” said Pos Malaysia Berhad’s Group Chief Executive
Officer, Syed Najib Syed Md Noor in relation to Pos Malaysia’s Q4FY2019 results.
He added “Pos Malaysia will make significant investments for its Digital Transformation
and expansion of its capabilities to serve the growing E Commerce demand.
In the pipeline, is the launching of our second Integrated Parcel Centre (IPC) in KLIA
increasing 78% of our capacity to 530,000 per day from 300,000, and a RM100 million
spend on its core system to enhance the overall Customer Experience on digital
technology.
The outlook for ECommerce and Pos Malaysia over the next few years are very promising.
We are looking at double digits growth to continue as more and more people shop online
in Malaysia.
With investments that we are continuously making, the foundations will be set for Pos
Malaysia to expand its business with the best infrastructure and solutions to serve the
market.”
