Tiong Nam returns to the black in FY20, supported by logistics and warehousing

KUALA LUMPUR (June 23): Tiong Nam Logistics Holdings Bhd recorded a narrower net loss of RM4.32 million in the fourth quarter ended March 31, 2020 (4QFY20) against a net loss of RM10.34 million a year ago.

The group achieved an operating profit of RM2.13 million compared to an operating loss of RM3.63 million previously.

Quarterly revenue grew by 4% in 4QFY20 to RM141.58 million versus RM136.47 million a year ago.

In a statement yesterday, the group said profit before tax in its core logistics and warehousing services segment jumped 400% year-on-year to RM10.8 million during the quarter from RM2.2 million.

It attributed the segment’s improved profitability to improved utilisation of warehousing services and higher deliveries for essential products, namely food and beverage as well as other consumer goods and medical equipment supplies.

This helped to mitigate the impact of overall decline in regional and domestic business activity stemming from Covid-19 pandemic and movement control order, it said.

The improved performance in the logistics and warehousing services segment supported the group’s annual earnings. It returned to the black with a net profit of RM719,000 for FY20 as compared with a net loss of RM1.4 million previously.

This was also backed by higher revenue of 2.2% to RM603.04 million versus RM589.87 million a year ago.

Tiong Nam managing director Ong Yoong Nyock said the group experienced a surge in customer deliveries from its clientele and the increase in activity will help to sustain the group’s performance moving forward.

Shares of Tiong Nam closed one sen or 1.23% higher at 41 sen yesterday, for a market capitalisation of RM183.73 million.

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