Thursday 28 Mar 2024
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KUALA LUMPUR (Jan 27): Tasco Bhd’s third quarter ended Dec 31, 2020 (3QFY21) net profit more than doubled year-on-year (y-o-y) to RM11.6 million, from RM3.88 million a year prior.

The logistics company said the increase in net profit was driven by higher revenue that was seen across all of its operating segments.

Quarterly revenue grew by 27.6% to RM242.71 million, from RM190.14 million in 3QFY20. Its international business solutions (IBS) segment’s quarterly revenue increased 69.4% y-o-y to RM102.7 million from RM60.6 million, while its domestic business solutions (DBS) segment saw revenue went up 8.1% y-o-y to RM140 million from RM129.5 million.

On a quarter-on-quarter (q-o-q) basis, the group saw its net profit rose 8.4% from RM10.7 million in 2QFY21, while revenue increased by 5.8% from the RM229.46 million seen in the immediate preceding quarter.

Cumulative net profit for the nine months ended Dec 31, 2020 (9MFY21) expanded by 169% to RM24.94 million, from RM9.27 million in the corresponding nine months last financial year. Cumulative revenue increased to RM650.73 million from RM561.2 million a year ago.

On its prospects, Tasco noted that it had managed to perform strongly after the first Movement Control Order (MCO) was lifted on May 4, 2020. Within its IBS segment, demand was resilient as demand for air-freight and sea-freight services outstripped supply, leading to higher rates.

Based on the current pandemic trajectory both globally and in Malaysia, Tasco’s expectation is that its international segment will be able to sustain its performance well into 2021. 

As for its domestic business, both contract logistics and cold supply chain divisions performed strongly since the lifting of the MCO. Aside from achieving record revenue, the group has also taken strong actions to control and reduce costs, according to its filing. 

These efforts have resulted in significantly better results in 3QFY21 at both top and bottom lines compared with the previous corresponding quarter as well as the immediate preceding quarter. 

“Hence, we are still cautiously confident of our financial performance for the remaining final quarter of the financial year,” said Tasco.

Commenting on the group’s prospects, Tasco said in view of the extreme uncertainties posed by the pandemic and new containment measures taken by the government due to spikes in infection, it is challenging to provide a definitive forecast of how things will play out. 

“Downside risks for the group will continue to be the uncertainty due to the Covid-19 pandemic, as well as the challenge to keep our operational costs under control. 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.

Edited ByKathy Fong
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