KUALA LUMPUR, 15 June 2020 – Pos Malaysia Berhad (Pos Malaysia) recorded a lower net loss in the first quarter of financial year, 2020 (Q1, FY2020) at RM49.2 million from RM141.1 million in the same quarter last year. Revenue was 6.1% lower at RM558.5 million.
The Group’s courier business saw an increase in parcel volume by 6.7% year-on-year, contributed by stronger demand from e-commerce and online marketplaces, aggressive digital and traditional sales & marketing drive, as well as improved mid-mile and last-mile efficiency.
The mail business saw an increase in revenue of 1.0% year-on-year contributed by the new postage rates revision that was implemented on 1 February 2020. Mail business’ monthly revenue increased by RM11 million in February 2020 but saw a decline in mail volume in March 2020 due to the COVID-19 pandemic.
Pos Malaysia Berhad’s Group Chief Executive Officer, Syed Md Najib said, “Pos Malaysia’s ongoing transformation continues to make progress, with the postal segment achieving improved gross profit as the company begins to realise the benefits of its operations improvements, cost efficiency and business focus initiatives.”
“E-commerce has and will continue to drive our courier segment. Delivery is a key element in the e-commerce customer journey, and we believe that automation of our parcel sorting centres and our digitalisation efforts in deploying the new track and trace system would provide us the competitive advantage and enhance customer experience.” Syed Md Najib added.
Business segment performance
Postal segment revenue was contributed by mail and retail products at RM190.3 million followed by courier at RM178.8 million. The postage rates revision that took effect on 1 February 2020 contributed positively to the postal segment revenue.
The unprecedented COVID-19 has the impacted business resulting in a decline in Q1 FY2020 revenue. While the e-commerce sector saw a surge in demand for courier services at the end of March, fewer retail transactions were recorded in post offices as customers remained cautious in treading outside their homes, while international business was affected by the cancellation of commercial and cargo flights as well as suspension of business activities.
Aviation segment contributed RM62.8 million revenue to the Group. This is mainly from cargo and ground handling businesses.
Logistics segment revenue of RM75.5 million is mainly from freight management business (freight forwarding and haulage) and automotive business (local automotive production volume).
Other segments consisting Datapos, Pos Digicert and Pos ArRahnu were not impacted by COVID-19 and are performing above targets.
The effect of the revised postage rates will soften the financial impact of the decline in mail volume and increase Pos Malaysia’s revenue in FY2020. The Group expects incremental annual revenue of RM100-150 million for the mail business compared to the previous year. The reopening of businesses, primarily bulk mail operators and higher footfall into Pos Malaysia outlets, are expected to provide some improvements to the Group’s mail and retail business.
Average daily parcel volume recorded in April 2020 was approximately 590,000, a 69% increase compared to March 2020 and a 66% increase compared to February 2020. The Group expects this trend to continue as more consumers adapt online shopping as the new norm.
The Group foresees transhipment volume to resume at a gradual pace, once more countries lift the COVID-19 related restrictions. April 2020 saw signs of recovery with transhipment revenue increasing by 84% compared to March 2020, due to the resumption of business in China.
Aviation segment’s recovery is expected to take longer and will depend upon the easing of travel restrictions, border control and imposition of new rules regarding air travel.
The logistics segment is expected to gradually improve with the easing of restrictions and the reopening of the economy by the government.
The group’s near-term objectives are to further improve service efficiencies and consequently, enhance customer experience by embracing automation and digitalisation, as outlined in the Group’s 3-year strategy in modernising its value chain, business practices and infrastructure.
About the Pos Malaysia Group
The Pos Malaysia Group is a dynamic postal (mail, retail, courier, and international), logistics, aviation, financial and supply chain solutions provider with the largest delivery and touchpoint network in Malaysia, offering an extensive retail network experience through its core business segments. With a track record of over 200 years, the Group connects the nation with over 200 postal operators globally and extended its capability to support South East Asia’s rapidly expanding cross-border eCommerce businesses. For information on the Pos Malaysia Group, visit www.pos.com.my
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