KUALA LUMPUR (Feb 20): Pos Malaysia Bhd narrowed its net loss to RM98.42 million for the fourth quarter ended Dec 31, 2022 (4QFY2022), from a loss of RM123.21 million for 4QFY2021, thanks to improved customer segmentation resulting in better yields and effective efforts in managing and optimising its assets.
As a result, earnings per loss decreased to 12.57 sen, from 15.74 sen for the previous year.
However, revenue for 4QFY2022 declined 11.61% to RM467.2 million from RM528.59 million, due to a lower revenue contribution from the postal segment.
“The cost of sales and operating expenses decreased by only RM7 million. Also included in the current quarter [under review] was impairment of certain property, plant and equipment of RM39.9 million,” said the national post and parcel service provider in a bourse filing on Monday (Feb 20).
Pos Malaysia, which has been in the red since FY2019, said its net loss for the full FY2022 narrowed to RM167.67 million from RM335.73 million a year ago.
This was despite FY2022 revenue falling 10.63% to RM1.96 billion from RM2.19 billion, as postal revenue declined 19% to RM1.24 billion from RM1.52 billion, due to a decline in overall parcel volumes, especially from contract customers.
The group said 2022 was a year marked by extraordinary challenges, including economic uncertainty and high inflation, resulting in reduced consumer spending.
“That, along with accelerated insourcing of parcels from the larger ‘platform’ sellers, use of ‘masking’ and heightened competitor activity, resulted in a very challenging environment.
“The ongoing challenges require continued structural changes. We will continue to focus on our transformation, adjusting our business model and capacity, and tackling our unprofitable segments,” the group explained.
Pos Malaysia also pointed out that the group's operations are characterised by high fixed costs, making it difficult to adjust capacity quickly to changes in volume trends.
“We remain dedicated to the multi-pronged transformation plan of improving financial performance, transforming the core business and culture, optimising for margin-led initiatives, maintaining strict cost control, and promoting sustainability guided by our ESG (environmental, social and governance) road map,” it added.
Pos Malaysia shares, which have fallen 16% in the past year, closed at 59.5 sen on Monday. Its market capitalisation stood at RM461.87 million.