Tiong Nam Logistics Holdings Bhd said in the 9 months ended 31 December 2021 (9M FY2022), group revenue grew 18.9% to RM513.0 million from RM431.3 million in the previous year, as it recorded higher activity from new and existing customers primarily in Malaysia. Of total revenue, 98.4% was contributed by its logistics and warehousing segment.
In a statement, it said that despite the higher revenue in 9M22, net profit for the period declined 37.4% to RM2.9 million from RM4.6 million previously, mainly due to higher expenses attributed to the operational expansions.
Ong Yoong Nyock Managing Director of Tiong Nam Logistics Holdings Berhad said:
“As the COVID-19 pandemic changed the landscape of global logistics, it is imperative that businesses strengthen their supply chain resources to ensure the smooth flow of goods and prevent potential disruptions.
Our integrated logistics and warehousing services have reliably enabled various industries to maintain their supply chain efficiency and resilience. Furthermore, we are supporting the increasing needs for logistics and warehousing in line with Malaysia’s economic recovery and rising e-commerce requirements.
With these trends expected to stay even post-COVID, we continue to expand our warehousing capacity, which will not only reinforce our position as the largest provider in Malaysia, but also allow us to support our customers’ long term needs.”
Meanwhile, in the third quarter ended 31 December 2021 (3Q FY2022), the Group delivered 13.5% higher revenue of RM180.7 million compared to RM159.3 million in the previous year on increased logistics and warehousing services activity.
However, net profit for 3Q FY2022 stood at RM1.1 million, 83.5% lower from RM6.4 million previously due to higher staff costs and depreciation from ongoing capacity expansions of its warehousing facilities and logistics fleet across Malaysia.
Tiong Nam said that it was undertaking expansion of its warehousing facilities, with total capacity expected to increase 12% from 6.7 million square feet (sq. ft.) as at 3Q FY2022 to 7.5 million sq. ft. in FY2024.
It said that part of its expansions include a new dedicated warehouse for Mercedes-Benz’s regional After-Sales Logistics Centre in Senai Airport City with 1.1 million sq. ft. built up area, to be completed in FY2024.
