KUALA LUMPUR (Feb 2): Tasco Bhd's net profit more than doubled to RM20.44 million for the third quarter ended Dec 31, 2022 (3QFY2023) from RM8.81 million a year earlier, helped by a reduction in non-operating and general expenses to RM5.6 million from RM22.8 million at the support division.

Earnings were affected in 3QFY2022 due to the write-off of a warehouse building at the Shah Alam Logistics Centre (which was demolished to make way for the reconstruction of a new four-storey modern warehouse) and the write-off of property, plant and equipment damaged by floods, which amounted to RM15.9 million.

Quarterly revenue decreased 13.71% to RM392.69 million from RM455.09 million in 3QFY2022, mainly because revenue from the international business solutions (IBS) segment declined 37.2% to RM184.9 million from RM294.4 million as freight rates in the market declined.

However, this was partially offset by an increase in revenue from the domestic business solutions (DBS) segment to RM207.8 million from RM160.7 million.

For the cumulative nine months, Tasco's net profit grew 71.36% to RM69 million from RM40.27 million, while revenue increased 26.36% to RM1.34 billion from RM1.06 billion.

Going forward, the group is cautiously optimistic about its outlook for FY2023, particularly with regard to the impact of inflationary pressures on operating costs, labour shortages and the risk of recession or stagflation.

Tasco's shares closed 2.5 sen or 2.7% lower at 90 sen on Thursday (Feb 2), giving the logistics solutions provider a market value of RM716.13 million.