Tiong Nam net loss narrows to RM4.3m in fourth quarter

Tiong Nam net loss narrows to RM4.3m in fourth quarter

PETALING JAYA: PETALING JAYA: Tiong Nam Logistics Holdings Bhd’s net loss narrowed to RM4.32 million in its fourth quarter ended March 31 from a net loss of RM10.34 million a year ago, thanks to its logistics and warehousing services segment.

Its revenue for the quarter increased 3.74% to RM141.58 million compared with RM136.47 million in the previous year’s corresponding quarter.

Tiona Nam said its pre-tax profit in its core logistics and warehousing services segment jumped 400.2% to RM10.8 million from RM2.2 million last year, driven by improved utilisation of warehousing services and higher deliveries for essential products, namely food & beverage (F&B) and other consumer goods, as well as medical equipment supplies.

This aided in mitigating the impact of overall decline in regional and domestic business activity stemming from Covid-19 pandemic and the movement control order (MCO). The higher profitability was achieved despite the segment posting a 2.6% decline in revenue to RM130.6 million from RM134.1 million previously.

The group’s property development segment recorded a pre-tax profit of RM1.8 million on RM9.1 million revenue, compared with a RM1 million pre-tax loss and RM1.2 million revenue previously. This was driven by sales of completed property units at the group’s PineTree Marina Resort.

Furthermore, the group’s hotel and dormitory segment posted a pre-tax loss of RM5.9 million on RM1.9 million revenue, from a pre-tax loss of RM4.3 million on RM1.1 million revenue due to the tourism industry being adversely affected by the Covid-19 pandemic.

For the full year, Tiong Nam posted a net profit of RM719,000 compared with a net loss of RM1.4 million in the previous year, while revenue rose 2.23% to RM603.04 million from RM589.87 million, primarily driven by the improved financial performance of the logistics and warehousing services and property development segments.

Managing director Ong Yoong Nyock said its integrated business model and diversified warehousing network across Malaysia has placed it in a favourable position to overcome the challenges to the logistics industry stemming from Covid-19 containment measures.

“Despite the logistics and warehousing services segment’s improved performance, we are mindful that now is not the time to be complacent and opine that the logistics sector will remain volatile on both regional and domestic fronts.

“We have, since the implementation of the conditional MCO on May 4, seen a surge in customer deliveries from our clientele. Our operations are capable of handling the increase in activity, which would help sustain our performance going forward,” Ong said in a statement.

source https://www.thesundaily.my/business/tiong-nam-net-loss-narrows-to-rm43m-in-fourth-quarter-DY2616656