PETALING JAYA: Freight Management Holdings Bhd’s net profit slumped 74.3% to RM1.07 million in the fourth quarter ended June 30, 2019 against RM4.17 million in the previous corresponding period, mainly due to higher share of losses from an associate in tug and barge services and impairment of its assets.
The lower earnings were also contributed by higher operating cost for third-party logistics & warehousing and the ongoing costs for the new distribution services.
Its revenue, however, rose 10.1% to RM142.96 million from RM129.9 million.
The group has proposed to declare an interim dividend of 2.5 sen per share for the quarter under review.
Freight Management’s full-year net profit declined 31% to RM13.6 million from RM19.7 million a year ago on the back of a 6.6% rise in revenue to RM545.35 million from RM511.59 million.
Barring unforeseen circumstances, the group is optimistic on a positive performance for the financial year ending June 30, 2020.
“The group will continue to focus on expanding its customer base regionally and improving its cost management via operational efficiencies to mitigate the decelerating global economic outlook, which is partly exacerbated by the ongoing trade war between the US and China.”
