KUALA LUMPUR: Pos Malaysia Bhd's net loss for the first quarter ended March 31, 2024 (1Q24) narrowed to RM19.69 million from RM27.66 million a year ago, driven by higher revenue, lower cost of sales and operating expenses.
Its quarterly revenue increased two per cent to RM491.97 million from RM482.27 million previously.
The group registered a loss per share of 2.52 sen compared to 3.53 sen loss in 1Q24, according to its filing to Bursa Malaysia today.
On a segmental basis, its postal segment achieved higher revenue by four per cent primarily contributed by mail business from a project with a government agency.
Aviation segment recorded higher revenue of RM91.7 million and turnaround from a pre-tax loss of RM0.5 million in 1Q23 to a pre-tax profit of RM3.5 million in the current quarter.
Logistics segment registered lower revenue at RM64.8 million compared to RM89.5 million in 1Q23.
The group's other segment registered lower revenue and profit before tax mainly attributable to printing and insertion business.
Pos Malaysia group chief executive officer Charles Brewer said in 1Q24, the group experienced an uptick in earnings primarily attributed to the enhanced performance of its mail and parcel services.
He added that compared to 1Q23, both segments saw an increase in volumes, signifying a very positive trajectory for our business.
"Despite the ongoing challenges posed by the weaker market, continued intense competition in the parcel market, and digitalisation trends impacting foot traffic and mail volumes, Pos Malaysia remains committed to delivering on its aspirational and exciting transformation journey.
"The company is accelerating the execution of its margin-led strategy, which includes plans to open an additional 40 new Pos Shop outlets in 2024, rapidly scaling both our fulfilment and international business as well as launching a software as a service (SaaS) business unit, which will provide market leading digital solutions for both the post and parcel sector and new focus industries.
"Whilst the traditional mail and parcel market continues to present challenges, we will remain and continue to innovate and adapt, and we remain confident in our ability to navigate the challenges and seize the many opportunities for growth in the months ahead," he said in a separate statement.
Looking ahead, Brewer said the group remains cautiously optimistic that it will deliver improved results in 2024.
He noted that the first quarter results reflect a significant milestone in our journey towards sustainable growth and profitability.
He added that through enhanced yields, a continued focus on optimising its assets, and stringent cost controls, the group has successfully navigated challenges while capitalising on the many opportunities that exist.
"Our steadfast focus remains on executing our transformation strategies, addressing unprofitable segments, and rapidly scaling our margin-led businesses."
In a separate Bursa Malaysia filing today, Pos Malaysia announced the sale of its ship chartering unit, which primarily handles bulk cargoes, for RM123.21 million.
This move is part of the company's strategy to divest from non-core businesses.
The proposed sale of PNSL Bhd to SWA Shipping Sdn Bhd will also settle outstanding intra-group trading debts and advances owed to Pos Malaysia.
The company added that the proceeds from the disposal are expected to strengthen its cash flow and reduce its interest expenses.
The disposal will also allow it to reposition and realign its investments into more profitable businesses with growth prospects.