KUALA LUMPUR (May 26): Total logistics solutions provider Tasco Bhd saw its net profit fall 11.1% to RM7.52 million or 3.76 sen per share in the fourth financial quarter ended March 31, 2017 (4QFY17) from RM8.46 million or 4.23 sen per share a year ago due to the absence of a one-time gain from disposal of a land and building in 4QFY16.

Quarterly revenue, however, rose 17.7% to RM147.39 million in 4QFY17 from RM125.27 million in 4QFY16, on contributions from its international business solutions (IBS) and domestic business solutions (DBS) segments which rose by 31.5% and 7% respectively.

The group also declared a final dividend of 2.5 sen per share for the financial year ended March 31, 2017 (FY17), payable on July 7.

For the full year FY17, Tasco's net profit rose by a marginal 0.2% to RM30.67 million or 15.33 sen per share from RM30.61 million or 15.3 sen per share in FY16, while revenue grew 13.3% to RM584.4 million from RM515.67 million.

In a filing with Bursa Malaysia today, Tasco said the increase in revenue was mainly contributed from its IBS segment, which rose 25.3% to RM262.5 million in FY17 from RM209.6 million in FY16. Its DBS segment also rose 5.2% to RM321.9 million from RM306.1 million.

Moving forward, the group said the improving global trade augurs well with its business. It expects to continue its growth in 2017, both from organic growth and its foray into cold chain business through acquisitions of Gold Cold Transport Sdn Bhd and MILS Cold Chain Sdn Bhd.

The group expects to complete the acquisitions by the end of 1QFY18 or early 2QFY18.

"Downside risks for the group include rising operational costs, in particular freight rates and labour costs, higher interest costs due to higher borrowings to fund the acquisitions, and keen competition for cargo in our traditional core businesses," Tasco said.

"We will continue to maintain our strategy to focus on servicing our customers with innovative logistics solutions and expand our logistics capacity when it is beneficial to our shareholders' value," it added.

Tasco's share price fell six sen or 2.33% to close at RM2.52 today, giving it a market capitalisation of RM504 million. Year to date, the counter has gained 68% from RM1.50 on Jan 3 this year.