KUALA LUMPUR, 25 February 2020 - Pos Malaysia Berhad (Pos Malaysia) today announced its results for the nine-month financial period ended 31 December 2019 (FP2019).
The Group recorded a lower revenue of RM1,682.5 million for the FP2019 as compared to RM1,760.4 million in the previous corresponding period ended 31 December 2018. This represents a decrease of RM77.9 million or 4.4%.
A goodwill impairment of RM90.6 million for Pos Logistics and the aircraft redelivery cost of RM28.6 million were the main contributors to the total loss before tax for the period. The continuous double digit decline in mail volume with pre-revision postage rates was the biggest contributor to the overall loss from operations. The total loss before tax which includes the impact mentioned above was at RM241.9 million.
Pos Malaysia Berhad’s Group Chief Executive Officer, Syed Md Najib said, “The recent announcement on the revised postage rates would contribute towards improving Pos Malaysia’s finances to better support the increasing costs in serving the Universal Service Obligations (USO). Pos Malaysia is set to embrace digitalisation to boost efficiency in order to take on more courier volume and enhance customer experience; catering to the booming e-commerce market.”
“Our transformation strategy require investments across our business value chain to further provide a much better customer experience to stay in the forefront of our competitors,” Syed Md Najib added.
Business segment performance
Postal Services segment, comprising of Mail & Retail services, registered lower revenue of RM446.5 million as compared to RM507.9 million, which represent a decrease of RM61.4 million, or 12%. This was caused by the continuous structural decline in traditional mail volume largely due to digital substitution. However Retail services recorded growth of 10% YoY due to strong sales from insurance products (General and Life insurance). Pos Malaysia currently partners with 16 insurance companies in Malaysia.
Courier segment recorded lower revenue of RM619.1 million compared to RM626.6 million registered in the previous corresponding period ended 31 December 2018. The malware attack incident in October 2019 impacted several major system functionalities, resulting in the loss of one and a half months of parcel and two months of bulk mail volume. We regained customers’ confidence after systems were fully recovered in December. Additionally, a crowded and open courier market environment necessitated Pos Laju to remain competitive.
Pos Aviation’s top line revenue dropped from RM223.3 million to RM203.6 million, which represents a decrease by RM19.7 million, mainly attributed to lower tonnage of cargo handled. The Company is currently exploring new lines of revenue stream to add to the existing business portfolio. Pos Aviation had recently entered into a strategic collaboration agreement with SIA Engineering Company Ltd for its engineering services business. The Company is also finalising to outsource its cargo aircrafts’ operations.
Pos Logistics registered marginally higher revenue by RM3.8 million from RM228.3 million last year to RM232.1 million, mainly contributed by growth in automotive logistics businesses (as Proton sales volume increased) and new business ventures (specialised logistics services to Linde & Central Sugar Refinery). Despite the slight growth, legacy issues pertaining to inefficiencies still exist and have been identified. Pos Logistics is currently exploring rationalisation of selected businesses and assets as it moves towards higher yielding services.
Outlook for Financial Year Ending 31 December 2020 (FY2020)
Pos Malaysia’s transformation continues in FY2020 towards achieving financial sustainability while serving its Universal Services Obligations in an increasingly competitive business landscape. The Group is focusing its efforts on revenue growth in line with the rapid e-Commerce boom, while embarking on operational efficiencies to improve its cost structure in the long run.
Among the initiatives to support this goal include promoting adoption of its online shipping platform SendParcel and revamped Pos Mobile App, expanding its courier touchpoints through agent outlets, as well as improving utilisation of its parcel lockers across 250 locations nationwide.
As Pos Malaysia scales up its courier business, it is investing in its retail and core systems, including its track and trace functionality to improve customer experience. On top of the modernisation of its ICT architecture and security, investments in parcel sorting automation will further reduce processing costs whilst increasing efficiency, capacity and speed.
Its two main subsidiaries are refocusing and rationalising non-core segments while expanding its product and service portfolios.
About Pos Malaysia Berhad
Pos Malaysia Berhad (Pos Malaysia) is the nation’s postal service provider and has a network of more than 1,000 touch points across the country, encompassing post offices, Pos Mini, Pos24 (self-service terminals), Pos-on-Wheels (Mobile Outlets), e-Commerce hub, Pos Laju outlets and service centers, Pos Laju Go2U (Mobile Outlets), Pos Laju Kiosks, Pos Laju EziBox and Pos Laju Prepaid Dropbox, as well as postal and stamp agents, offering Malaysians the most extensive postal retail network.
With a track record of over 200 years, Pos Malaysia has progressed and evolved from being a mail and postal services provider to becoming a dynamic communication, financial services and supply chain solutions provider. Pos Malaysia will continue to transform and innovate with the current times to sustain its competitive edge as well as continue to connect Malaysians with the rest of the world.
For further information about Pos Malaysia, please contact our Customer Care via PosLine at 1-300-300-300 or e-mail to firstname.lastname@example.org. You can also visit our website at www.pos.com.my.
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