KUALA LUMPUR (May 23): The net profit of Freight Management Holdings Bhd tumbled 24.1% to RM3.7 million in the third financial quarter ended March 31, 2018 from RM4.88 million a year ago, mainly due to a share of losses in its associate.

In a filing to Bursa Malaysia, Freight Management said the group's overall financial results was dragged by the weak performance of its associate in the tug and barge business.

However, group revenue was 4.2% higher at RM121.94 million compared to RM116.97 million a year ago, owing to an increase in activities.

The group said all of its services segments saw growth except for airfreight, which declined by 5%. The sea freight segment remained its highest revenue contributor, accounting for RM78.4 million, which is 8% more than the RM72.7 million reported in the same period last year.

The 3PL & Warehousing and land freight segments also registered commendable revenue growth of 11% and 25% respectively.

Incidentally, Freight Management also has a 65% stake in e-commerce business FM Hubwire Sdn Bhd, which has been loss-making since its inception in 2016.

The board of directors of Freight Management has declared a first interim single tier dividend of 1.5 sen per share for the financial year ending June 30, 2018, which will be paid on July 27, 2018.

The group's net profit remained flattish at RM15.53 million for the cumulative nine months ended March 31, compared to RM15.2 million for the same period last year. This was on the back of a 13.2% year-on-year increase in revenue to RM381.69 million from RM337.14 million.

Moving forward, the group said it will continue to further strengthen its customer base and operational efficiencies.

"Barring unforeseen circumstances, the group expects its performance to be positive for the financial year ending June 30, 2018," it added.

Freight Management shares were not traded today. The stock closed up 2 sen or 1.69% higher at RM1.20 yesterday (May 22) for a market capitalisation of RM223.38 million.