Century Logistics' Q3 earnings fall 3.72%

PETALING JAYA: Century Logistics Holdings Bhd's net profit for the third quarter ended Sept 30, 2017 fell 3.72% to RM3.86 million from RM4.01 million a year ago due to lower profit contribution from its two business segments.
In a filing with Bursa Malaysia today, the group said the total logistics services segment contributed profit of RM14.53 million compared with RM15.78 million a year ago while the procurement logistics services segment contributed RM2.58 million compared with RM4.40 million a year ago.
It said that both segments recorded lower profits due to lower activity. The group also incurred costs for setting up the parcel delivery operation amounting to RM276,000 during the quarter.
Revenue for the quarter fell 1.40% to RM72.52 million from RM73.55 million a year ago.
For the nine months ended Sept 30, 2017, net profit fell 15.64% to RM11.72 million from RM13.89 million a year ago while revenue fell 4.51% to RM215.50 million from RM225.67 million a year ago.
The group expects the logistics sector to remain challenging in 2017, which it plans to address by leveraging on its extensive customer base and internal strength that focuses on providing value added logistics solutions while maintaining cost efficiencies.
It also intends to tap on the extensive network and infrastructure of its major shareholder, CJ Logistics Group. It is currently setting up the necessary infrastructure to roll-out its parcel delivery operation and expects to commence operation by the first quarter of 2018.
At 3pm, Century Logistics shares were unchanged at RM1.10 on some 22,900 shares done.