KUALA LUMPUR (Nov 24): Pos Malaysia Bhd’s net loss narrowed to RM7.43 million in the third quarter ended Sept 30, 2020 (3QFY20), from RM19.02 million in the preceding quarter, on the back of easing nationwide movement restrictions and resumption of economic activities that benefited its mail, retail and logistics businesses.

Quarterly loss per share stood at 0.95 sen, compared with 2.43 sen per share in 2QFY20.

Despite the smaller net losses in 3QFY20, the national postal service provider has been loss-making for the ninth consecutive quarter.

Nonetheless, after eight consecutive quarters of losses from operations, Pos Malaysia reported RM160,000 in profit from operations in 3QFY20, versus a loss from operation of RM2.04 million in 2QFY20.

Quarterly revenue, however, grew by 2.8% to RM623.03 million from RM606.08 million in 2QFY20, according to its filing with Bursa Malaysia today.

On a year-on-year basis, Pos Malaysia’s net loss contraction deepened from RM29.34 million in the previous corresponding quarter, while revenue grew 13.3% from RM550 million.

The postal group’s courier business, albeit declined slightly from the record parcel volumes seen in 2QFY20, remains better than pre-pandemic levels, said Pos Malaysia.

Losses incurred by its aviation business shrunk by 34% quarter-on-quarter, as it continues to aggressively manage its cost.

For the cumulative nine-month period, its net loss came in at RM75.67 million or 9.67 sen per share, while revenue stood at RM1.79 billion.

Note that Pos Malaysia had changed its financial year end to Dec 31, from March 31 previously.

On prospects, Pos Malaysia said the reinstatement of partial movement restrictions in October 2020 should result in an increase in online shopping and will likely have a positive impact on its courier business. 

“We foresee that parcel volume will be high in 4QFY20, driven by 11.11 and year-end online sales,” said Pos Malaysia.

However, the company anticipates a reduction in footfall into its post offices, which would result in a dip in retail business revenue, adding that mail volume will continue to decline but at a much slower-than-expected rate, after the implementation of new postal tariffs.

“We maintain our initial projection that the new postal tariffs will contribute positively to our bottom line,” said Pos Malaysia.

Pos Malaysia’s Group Chief Executive Officer Syed Md Najib said in a separate statement that the company has installed new semi-automated processing systems in five distribution centres in 3QFY20, and to-date, have a total of 31 semi-automated distribution centres.

He noted that this is part of its transformation plan, as Pos Malaysia aims to further improve efficiency and manage its costs.