KUALA LUMPUR (May 29): GDEX Bhd remained in the red in the first quarter ended March 31, 2023 (1QFY2023), widening its net loss to RM7.21 million, from RM1.9 million a year ago.

This is the fifth consecutive quarterly loss for the group. It first slipped into the red in 1QFY2022 with a net loss of RM1.9 million, which was its first loss-making quarter since it was listed on the ACE Market in 2005, before being transferred to the Main Market in 2013.

As a result, loss per share was 0.13 sen against 0.03 sen a year ago, the logistics and express carrier provider’s filing with Bursa Malaysia showed.

Quarterly revenue, however, rose 7.18% to RM98.48 million from RM91.89 million last year, mainly contributed by the group’s new information technology segment.

On a quarter-on-quarter basis, the group’s net loss expanded from RM6 million recorded in 1QFY2022. Revenue fell 4% from RM102.57 million in the immediate preceding quarter.

The decline in the quarterly performance was due to the lower demand for its courier services and logistics business, as a result of lower demand in online business activities following the various retail businesses resumed, coupled with the slow pace of business activities of its warehousing customers as well as the increase in warehouse and information technology (IT) maintenance and operating costs.

Meanwhile, the group announced its first and final single-tier dividend of 0.15 sen per share for the financial year ended Dec 31, 2022 (FY2022). The dividend, with an ex-date of June 21, will be paid on July 7.

GDEX expects the outlook of the courier services and logistics industry in 2023 to be challenging due to overcrowding of foreign players, weak market sentiments, low demand conditions, and inflationary pressure including manpower cost.

“The group will continue to drive cost optimisation and operational efficiency, as well as increase the differentiation of its products and services to grow its business activities, through potential business opportunities in the last mile, logistics and warehouse fulfilment, as well as IT,” it said.

Shares in GDEX closed down half a sen or 2.86% to 17 sen on Monday (May 29), bringing the group a market capitalisation of RM932.4 million.