Pos Malaysia recorded a 17% growth in its net profit in the first quarter of the year, despite an 11% increase in its operating costs, thanks to growth in business mail and parcel services.
The national postal service of Malaysia issued its latest financial results on Friday, showing revenues up 14% year-on-year to RM 355.8m in the three months up to the end of June 2013.
Expenses in the quarter rose to RM 298.1m, driven by staff salaries and higher transport costs, but the company’s profit still grew to RM 43.1m.
Mail generated 56.7% of total group revenue in the quarter, with the courier business bringing in 24.8% of revenue and the retail unit generating 12.4% of group revenue.
Pos Malaysia said its Mail division generated a 12.5% year-on-year increase in operating profits, to RM 44.1m, thanks to a cut in costs and growth in revenue for business mail services including admail, direct mail and corporate mail as well as for prepaid register mail.
Ordinary and franked mail saw revenue declines, of respectively 6% and 2.1%.
The courier business, which operates under the brand PosLaju, recorded a 60.9% jump in operating profits during the quarter, to RM 16.8m, with a 24.6% growth in revenue for on demand courier services, a 12.9% growth in contract customer revenue.
The courier unit also registered a more than doubling in the use of prepaid box/envelopes, thanks in large part to online transactions and the extension of counter hours at PosLaju centers in the Klang Valley.
Pos Malaysia said its retail segment recorded a small increase in its operating loss, of RM 500,000, mainly because of higher costs from staff salaries.
The postal company said it believed its outlook was a positive one, as it expected the global economy to further stabilise and the Malaysian economy to grow by 5-6% in 2013.
Growth should come particularly in courier, parcel and financial services, along with the company’s expansion into new services in the logistics and supply chain field.
“Looking ahead, Pos Malaysia is staying on course in implementing and delivering its 5-year Strategic Plan initiated in 2012 to create an efficient and effective foundation that provides Pos Malaysia with both the strength and stability to support revenue diversification, in line with best practices of other successful postal organisations,” the company said.
Pos Malaysia currently has 16,200 staff, 8,200 vehicles, and 5,700 touch points. The company services 85,700 PO boxes and 3,300 street posting boxes.
In the 2012/13 year, the company made a RM 191.9m pre-tax profit, almost double that in 2010, on a record RM 1.27bn revenue.
Mail contributed RM 724.5m revenue (57.1% of total), the courier business brought in RM 322.7m (25.4% of total) and the retail business brought in RM 175.3m (13.8% of total).