KUALA LUMPUR (Aug 30): GD Express Carrier Bhd (GDex) closed its fourth quarter ended June 30, 2018 (4QFY18) with net profit declining 43% to RM6.52 million from RM11.51 million a year ago, dragged by higher operating expenses as the group undertook aggressive network expansion, as well as due to higher taxation.

Quarterly earnings per share (EPS) declined to 0.12 sen, from 0.21 sen in 4QFY17, the group said in a bourse filing today.

The courier company proposed a final dividend of 0.2 sen for the financial year ended June 30, 2018 (FY18), down from 0.25 sen in FY17.

The weaker reported quarterly earnings came despite revenue rising 15% to RM74.36 million, from RM64.87 million a year ago, on higher contribution from both its courier services and logistics services segments.

For FY18, GDex’s net profit dropped 36% to RM23.63 million from RM36.83 million a year ago, despite full-year revenue rising 17% to RM292.99 million from RM250.51 million previously (FY17). 

The lower annual income, according to its financial statement, was due to higher operating expenses and higher taxes in the year under review. 

On prospects, GDex said: “The group remains optimistic and expects to make steady progress in performance, due to the growing popularity in e-commerce business. 

“Nevertheless, the group continues to expect more intense competition in the express delivery industry, with some impact on its business margin,” the filing added.

The group will continue investing in resources and infrastructure to expand its domestic and regional networks, aside from actively seeking other strategic investment opportunities. 

Shares of GDex closed down 1.18% or half a sen to 42 sen today, giving the group a market capitalisation of RM2.38 billion.