The logistics company posted a record high revenue of RM691.0 million in the financial year ended 31 March 2022 (FY2022), a growth of 14.8% year-on-year driven by improved contribution from logistics and warehousing services.
Its logistics and warehousing services arm, which contributed 97.8% of FY2022 group revenue, benefited from increased demand for total logistics solutions during the pandemic, in addition to the country’s improving economic activity.
“Our forward prospects will be supported by the country’s progress in economic recovery, as well as the reopening of borders which is expected to support higher trade activity. Overall, we are cautiously optimistic of registering better performance in the current financial year ending 31 March 2023 (FY2023),” Ong Yoong Nyock Managing Director of Tiong Nam Logistics Holdings Berhad said.
“As a leading provider of total logistics solutions, with the largest network of warehouses and truck fleet in the country, we are committed to support businesses and supply chains in maintaining smooth handling and delivery of shipments,” he added.
Despite the higher revenue, group profit before tax (PBT) for FY2022 declined 18.2% to RM17.1 million, mainly due to share of loss in an associate of RM7.5 million. Without the share of loss in the associate, Terminal Perintis Sdn Bhd (TPSB), FY2022 PBT from core operations grew 18.2% to RM24.7 million from RM20.9 million previously.
Meanwhile, FY2022 net profit was lower at RM5.1 million versus RM11.4 million a year ago mainly due to the share of loss in the hospitality associate. For the fourth quarter ended 31 March 2022 (4Q FY2022), group revenue improved 4.2%
year-on-year to RM178.0 million, mainly on higher contribution from logistics and warehousing services, property development, and investments.
However, 4Q FY2022 PBT declined 31.9% to RM7.6 million from RM11.1 million a year ago, chiefly attributable to share of loss in the hospitality associate of RM6.5 million. Without the share of associate loss, core PBT rose 26.8% to RM14.1 million in 4Q FY2022.
The Group had reduced its stake in its former wholly-owned hospitality subsidiary, TPSB, to a 49% associate stake in 2021, as it realigned its resources to focus on expansion of the logistics and warehousing services segment. TPSB owns Fraser Place Puteri Harbour, a 25-storey hotel in Johor Bahru.
“We target stable growth in our core operations of total logistics solutions in FY2023, despite economic headwinds and inflationary pressures posing potential challenges. This is supported by our diversified customer base across various industries and increasing contribution from multinational clientele,” Mr. Ong said.
“Meanwhile, our hospitality associate is expected to return to the black in the coming quarters, as domestic leisure and business travel picks up, in addition to increasing foreign arrivals. This will enhance the Group’s earnings performance for the year,” he concluded.
