CJ Century Logistics Holdings Berhad announced its financial results for the six months ended 30 June 2022 (“1HFY22”) with the Group achieving revenue of RM495.728 million, representing an increase of 9.9% from the RM451.027 million recorded in the corresponding period of the preceding year. Profit after tax and minority interests (“PATMI”) improved 65.8% to RM16.537 million during the period under review, from RM9.977 million in 1HFY21.
With the positive result, the group after a hiatus of 4 years, has resumed dividend payment, starting with a tax-exempt (single-tier) interim dividend of 0.5 sen per ordinary share for 1HFY22.
On a quarterly basis, the Group’s revenue improved by 9.4% to RM252.939 million from RM231.130 million in the corresponding quarter of the previous year (“2QFY21”). On the back of higher revenue and better utilisation of capacity, PATMI surged by 132.7% from RM3.090 million in 2QFY21 to RM7.190 million in 2QFY22.
Its Total Logistics services segment continued its strong growth momentum in 1HFY22, with segment revenue increasing by 14.6% to RM380.427 million from RM331.861 million in 1HFY21. Earnings before interest and tax (“EBIT”) increased 74.6% to RM22.859 million from RM13.089 million in 1HFY21 underpinned by high export volumes recorded by the freight forwarding operation as customers’ volumes increased following the easing of pandemic containment measures globally.
The Procurement Logistics segment, which accounted for 23.3% of the Group’s revenue, posted revenue of RM115.301 million, a slight decrease from the RM119.166 million recorded in 1HFY21. Similarly, EBIT was marginally lower at RM5.485 million in 1HFY22 compared with RM5.910 million in 1HFY21. The division faced a supply disruption of components from its suppliers in China, predominantly due to the strict zero-Covid policy enforced by China’s Government during the first quarter of 2022. As a result of this supply disruption, export volumes were reduced and deferred to later quarters. Export customers, being aware of the situation, had agreed to the deferment of exports to later periods. On a positive note, the supply disruption had eased towards the latter part of 2QFY22.
Steven Teow, Chief Executive Officer of CJ Century said “Despite the challenging economic environment caused by the pandemic, geopolitical tensions, and supply chain disruptions, our resilient business model has allowed us to adapt ourselves to manage the uncertainties effectively and continually improve our operations.”
