Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (Feb 20): GD Express Carrier Bhd’s (GDex) net profit nearly halved in its second quarter ended Dec 31, 2019 (2QFY20), mainly due to the absence of proceeds from the redemption of convertible bonds, besides other expenses including warehouse expansion.

Its net profit fell 45.1% year-on-year to RM5.87 million during the quarter from RM10.69 million, despite recording a 5.5% gain in revenue to RM87.39 million, versus RM82.81 million in the year-ago quarter.

In an exchange filing today, GDex said its higher revenue reported in the quarter was mainly due to the increase in demand of courier services for e-commerce (business-to-consumer [B2C]) business.

However, profit before taxation (PBT) at its courier services segment fell 40% mainly in the absence of the gain on redemption of convertible bonds of some RM17.28 million, which was recognised in the preceding year's corresponding quarter.

Over at its logistics services segment, GDex said despite a 35% increase in revenue, PBT came in 87% lower due to expenses incurred for warehouse expansion and maintenance.

Meanwhile, its property investment segment recorded losses, mainly due to expenses incurred for property maintenance and as most of the facilities are for internal usage, the group explained.

This brings GDex’s first-half net profit to RM10.63 million, down 38.1% from RM17.16 million in the same period a year ago, whereas cumulative revenue stood at RM170.43 million, higher by 8.3% compared with RM157.32 million.

Commenting on its prospects, GDex warned that “the economic uncertainties arising from the outbreak of Covid-19 may impact the group’s results”.

It said it will continue to stand cautious while being proactive towards developing a strong intra-Asean delivery network.

“This will ensure the growth and sustainability of the business amidst intense competitive environment in the industry.

“The group remains focused on maintaining the growth of B2B (business-to-business) and B2C segments with a more customer centric approach to win market share,” the group added.

GDex settled unchanged today at 24 sen per share after 1.2 million shares crossed, bringing the group a market capitalisation of RM1.35 billion.

      Print
      Text Size
      Share