Swift Haulage Bhd’s (Swift) net profit leaped by 73% to 16.6 million in its fourth quarter for the financial year ended December 31, 2023 (4QFY2023) from RM9.6 million in the same period last year (4QFY2022).
“This is on the back revenue of RM173.3 million in 4QFY2023, a slight bump from RM164 million in the same quarter last year.
Revenue was primarily contributed by container haulage (RM66.9 million) and land transportation (RM65.2 million), collectively amounting to 76.2% of total group revenue,” it said in a statement announcing results for 4QFY2023 and financial period-to-date ended 31 December 2023 (12MFY2023) today (Feb 23).
For 12MFY2023, the group saw its net profit increased by 33% in 12MFY2023 to RM65 million from RM42 million in the same period last year (12MFY2022).
“The group’s revenue increased 4.2% to RM671.2 million in 12MFY2023 compared to RM643.8 million in the corresponding period last year.
“Revenue was mainly contributed by container haulage (RM267.3 million) and land transportation (RM244.6 million). These key segments collectively made up 76.3% total group revenue.
“Revenue growth was mainly driven by the additional revenue generated from the increase in fleet capacity for Land Transportation and higher revenue from our Warehousing segment as three new warehouses were completed in FY2022.
The haulier and leading integrated logistics service provider said in life with its commitment to environmental sustainability, the group continues to prioritize its carbon reduction initiatives.
“We are committed to build only eco-friendly and green certified warehouses going forward. The ongoing expansion is on track with the first green certified warehouse in Westport measuring 269,000 sq ft, it slated to commence operations in the 1QFY2024.
“In addition to that, we expected to complete the acquisition of a land and warehouse measuring 118,000 square feet in 2QFY2024 in Penang which will further add to their capacity in the Northern region.
“These additional warehouses will bring Swift’s warehousing capacity up to approximately 1.7 million sq ft,” it said.
Swift group chief executive officer Loo Yong Hui said the logistics sector is closely correlated with the pace of economic activities and international trade.
“Throughout 2023, Malaysia witnessed a decline in trade performance, as indicated by an 8% contraction in exports and a 6.4% weakening in imports.
“Against this backdrop, our FY2023 financial performance is commendable. Profitability was boosted by a gain on bargain purchase that offset the higher finance costs and increased overheads incurred due to our business expansion,” said Loo.
He said FY2023 has been an eventful year for the group, as it successfully deployed Malaysia’s and the region’s first electric prime movers for Unilever, which marked a significant milestone towards eco-friendly transportation solutions.
“Looking ahead, we are actively exploring opportunities to expand our electric vehicle fleet throughout 2024. Notably, we have also committed to building only eco-friendly and green certified warehouses evidenced by our new warehouse in Pulau Indah.
Loo also said the warehousing segment is expected to be a long-term growth driver as we expect the demand for eco-friendly warehousing to remain strong.
“We intent to capitalise on this as we aggressively expand our warehousing footprint and capacity beyond the current 1.6 million sq ft
“Furthermore, Swift’s associate, Global Vision Logistics, is on tract to complete Phase 1 of the Shah Alam International Logistics Hub by 4QCY2025,” he added.
As at 31 December 2023, Swift Haulage’s balance sheet remained robust sporting a cash position of RM159.2 million whilst net gearing stood at a healthy 0.92 times against shareholders funds’ of RM706.5 million.
