KUALA LUMPUR (July 29): Logistics company Tasco Bhd (KL:TASCO) posted a 7.22% decline in its first-quarter net profit despite higher revenue, as a higher cost of sales ate into its profitability.

The net profit for the three months ended June 30, 2026 (1QFY2027) slipped to RM8.53 million from RM9.19 million a year earlier, according to a bourse filing on Wednesday.

Cost of sales increased 13% year-on-year to RM209.95 million from RM185.75 million.

Tasco said a higher income tax expense also weighed on its profitability, rising 24.8% to RM2.58 million from RM2.07 million.

Quarterly revenue rose 10.18% to RM245.23 million from RM222.57 million a year earlier. This is the highest revenue in nearly two years since 2QFY2025, when it reported a revenue of RM295.69 million.

Tasco said the higher revenue was driven by its international business solutions (IBS) segment, whose revenue climbed 27% to RM126.9 million from RM99.94 million.

Revenue for the domestic business solutions (DBS) segment fell 3.38% to RM118.33 million from RM122.47 million, due to weaker revenue contribution from its contract logistics and cold chain logistics divisions.

Tasco did not declare any dividend for the quarter.

Looking ahead, the group said downside risks include a slowdown in global trade, prolonged geopolitical conflicts, escalating trade tensions, exchange rate volatility, and rising operating and compliance costs.

It said operating conditions remain challenging amid renewed escalation of conflict in the Middle East.

“Disruptions around key maritime chokepoints have increased transit uncertainty, prompting some shipping lines to reroute vessels, adjust sailing schedules and impose additional fuel- and security-related surcharges.

“At the same time, elevated freight rates, longer transit times and continued volatility in energy prices have reinforced the importance of supply chain flexibility and operational resilience, with customers remaining cautious in their inventory management and shipment planning,” it added.

Nevertheless, Tasco expects its recent completion for the expansion of the Shah Alam Logistics Centre and warehouse development at Northport Logistics Centre in Port Klang to contribute positively to its earnings in the current financial year.

Tasco’s share price closed down half a sen or 1.3% on Wednesday, giving the company a market capitalisation of RM304 million. The stock has fallen 18% so far this year.