Century Logistics Q2 net profit falls 44%

PETALING JAYA: Century Logistics Holdings Bhd saw a 44.36% fall in its net profit for the second quarter ended June 30, to RM3.01 million from RM5.41 million a year ago due to lower activity in total and procurement logistic services due to the Hari Raya festival during second quarter.
Its revenue for the quarter under review, fell 12.87% to RM71.94 million from RM82.57 million primarily driven by contributions from its logistics services. The logistics service provider has proposed an interim dividend of 0.5 sen per share.
Its board of directors said in a Bursa Malaysia filing that, in view of the challenging climate in the logistics sector, the group will be leveraging on its extensive customer base as well as provide value added logistics solutions, while maintaining cost efficiencies.
"The ongoing synergy process, the group also intends to tap on the extensive network and infrastructure of its major shareholder, CJ Logistics Group. The group is currently setting up the necessary infrastructure to roll-out its parcel delivery operation and expects to commence the operation soon," it added.
Its cumulative net profit for the first half of the year stood at RM7.86 million, which is 20.44% lower than the RM9.88 million registered in the same period last year.
Revenue from year-to date also declined by 6% to RM142.97 million from RM152.11 million.
The group's shares gained 1.68% to close at RM1.21 with some 1.72 million shares changing hands. Its market capitalisation stood at RM475.07 million.