KUALA LUMPUR (May 25): Pos Malaysia Bhd saw its net loss significantly narrow to RM46.78 million in the first quarter ended March 31, 2021 (1QFY21), from RM232.35 million in the immediately preceding quarter (4QFY20), mainly due to the absence of impairments.

The postal and logistics company said its lower losses were attributed to the lack of impairments during its latest financial quarter. In 4QFY20, it had included an impairment loss of goodwill in the logistics and aviation segments of RM123.3 million, a provision for mutual separation scheme of RM41.6 million and an impairment of property, plant and equipment of RM16.2 million.

Revenue in 1QFY21 declined by 9.3% to RM595.28 million from RM544.63 million in the immediately preceding quarter.

It did not declare any dividends this quarter.

On a year-on-year (y-o-y) basis, the group posted a narrower net loss compared to RM49.22 million. Meanwhile, its quarterly revenue increased by 6.58% from RM558.53 million.

Breaking down its results, the group noted that its postal segment’s losses came in lower amid reduced manpower cost during the quarter. The segment posted a loss before tax (LBT) of RM48.82 million, from RM49.86 million in 1QFY20. The segment’s revenue increased by 8.8% y-o-y to RM425.28 million from RM390.9 million on an 18% increase in parcel volume, which was largely from contract customers.

Its logistics segment returned to the black with a profit before tax of RM1.7 million, from LBT of RM4.88 million. The turnaround in segmental earnings was due to the segment’s automotive, marine and freight management businesses seeing improved profitability. Segmental revenue increased by 34.1% to RM101.2 million from RM75.48 million on the freight management and automotive businesses.

On its prospects, Pos Malaysia noted that its courier business was hit by the temporary closures of its two main parcel processing centres towards the end of 2020 and managed to recapture lost ground in 1QFY21, as shown by a 9% quarter-on-quarter (q-o-q) increase in parcels delivered.

“This momentum is expected to continue which should bring a positive impact towards courier volume in the coming months. As part of its initiative to improve cost structure, the company has embarked on a rationalisation of the mail business infrastructure, by closing its Segamat Mail Processing Centre (MPC), with its function being consolidated at the National Mail Centre in Shah Alam.

"Several more MPCs are expected to be rationalised throughout the year, where it would result in cost savings. The company will also continue its efforts to improve efficiency and manage costs in all aspects of its businesses via continuous operational reviews and new initiatives,” it said.

It noted that it will remain digital in the wake of the increase in Covid-19 cases in Malaysia and to ensure that steps are taken to avoid and minimise infections among its workforce as well as at customer-facing centres.

“The growing daily Covid-19 cases with new stronger variants [are] continuing to pose challenges towards the recovery effort of the nation’s economy.

“As such the company remained cautious on the challenging operational performance for the current financial year ending Dec 31, 2021, whilst continuing to take appropriate steps to ensure that the near-term prospects remain stable,” it said.

Shares in Pos Malaysia closed 1.22% or a sen lower at 81 sen, valuing it at RM634.05 million. A total of 1.44 million shares were done today.