Tasco achieves record earnings, revenue for FY21

TheEdge Tue, Apr 27, 2021 07:56pm - 2 years View Original


KUALA LUMPUR (April 27): Tasco Bhd closed its financial year ended March 31, 2021 (FY21) with record-high annual earnings and revenue, driven by Covid-19 pandemic-induced spike in shipping rates.

“Our group has managed to turn in very solid results, recording historic highs in both revenue and profits for the financial year just ended [FY21]. Our international business solutions (IBS) business (both our Air Freight Forwarding (AFF) and Ocean Freight Forwarding (OFF) divisions) has proven to be resilient despite the pandemic, as demands for both air freight and sea freight services outstripped industry supply, resulting in significantly higher air freight and sea freight rates, it stated,” Tasco said in its Bursa Malaysia filing today.

It made a net profit of RM16.34 million for its final quarter (4QFY21) of the year, against a net loss of RM377,000 in 4QFY20, as revenue jumped 58.88% to RM295.88 million from RM186.24 million.

On a quarter-on-quarter (q-o-q) basis, the group's net profit expanded 40.89% from RM11.60 million in 3QFY21, while revenue grew 21.91% from RM242.71 million.

For FY21 as a whole, its net profit leapt four times to RM41.27 million from RM8.89 million in FY20, while cumulative revenue expanded 26.65% to RM946.61 million from RM747.44 million.

Despite netting stronger earnings, Tasco did not declare any dividend for this quarter or FY21. In contrast, the group paid a two sen dividend per share in FY20.

On prospects, based on current pandemic trajectory both globally and in Malaysia, Tasco expects its IBS to be able to sustain its performance this year. “Similarly,  (our) domestic business solutions (DBS) segment (in particular the contract logistics division (CL) and Cold supply chain (CSC) divisions) has rebounded back strongly performance-wise, especially in the last two quarters,” it added

Hence, Tasco is cautiously confident of its financial performance for FY22 ending March 31, 2022, though it noted that downside risks will continue to be those posed by the pandemic, especially in view of new mutant strains and uneven vaccine rollouts throughout the world.

“Other downside risks will be the challenge to keep our operational costs under control, including direct costs, as well as other general operational overheads. We will continue to maintain our strategy to focus on servicing our customers with innovative logistics solutions and expand our logistics capacity when it is beneficial to our shareholders' value,” it concluded.

Tasco shares closed four sen or 3.08% lower at RM1.26 today, with a market capitalisation of RM1.01 billion, after 10.86 million shares were traded. The stock, which was trading below 20 sen in March last year, hit a record high of RM1.48 on Feb 11 this year.

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