KUALA LUMPUR: Pos Malaysia Bhd aims to increase its e-commerce earnings contributions to 50% in its next financial year. The e-commerce segment is currently contributing 44% to the group’s revenue.
Its group chief executive officer Datuk Mohd Shukrie Mohd Salleh said he is positive about the outlook of the e-commerce business of Pos Malaysia. He said the e-commerce business of Pos Malaysia had been growing at no less than 15% per year.
“We have not completed our financial year end yet, but we are looking at around a 20% to 22% growth in e-commerce business this year end,” he said.
For its cumulative first nine months of financial year 2017, the postal group’s net profit doubled to RM73.42 million from RM48.74 million a year ago. Revenue was up 12.7% to RM1.45 billion compared with RM1.28 billion a year ago.
According to him, moving forward, Pos Malaysia intends to move into the business-to-business e-commerce segment aside from business-to-consumer.
He said the group had recently acquired a few e-commerce and general logistics companies with hopes to facilitate this.
Mohd Shukrie said Pos Malaysia has embarked on several initiatives to improve its customers’ e-commerce needs and cites its new Pos Laju EziBox service as having had a positive response.
“We have recently started the parcel locker segment which has a 70% to 80% utilisation. The demand is definitely there,” Mohd Shukrie told reporters after a media briefing on e-commerce success stories in Malaysia held by the National eCommerce Council (NeCC) yesterday.
Moving forward, Mohd Shukrie said that Pos Malaysia is looking to eliminate the possibility of the “sorry note” that customers receive when they miss the parcel delivery. The group currently has 16 centres and is looking to add at least another 50 next year.
Mohd Shukrie added that Pos Laju has delivered 70 million parcels in its current financial year.
“Next year we are looking at around 84 million items. Every year it grows by about 20%,” he said.
On its capital expenditure (capex), Mohd Shukrie said the group is looking to spend no less than RM300 million in the next financial year.
“A big chunk of our capex will go to e-commerce and to a large extent on the expansion of our processing facilities.”