Tasco posts weak earnings due to international freight forwarding ops

PETALING JAYA: Tasco Bhd has reported its weakest annual net profit in three years, dragged down by the poor performance of its international freight forwarding and domestic contract logistics businesses.

For the financial year ended March 31, 2024 (FY24), the logistics company’s net profit tumbled by 32% year-on-year (y-o-y) to Rm61.74mil.

Its revenue suffered a 33.2% y-o-y drop to Rm1.07bil – also the lowest in three years. Its international business solutions (IBS) segment decline was attributable to challenging economic conditions, lower demand rates for its freights, lower yield and volumes as well as weak air shipments.

On the other hand, Tasco’s domestic business solutions (DBS) segment saw a decline in its contract logistics division, while its cold supply chain and trucking division posted a hike in revenue.

As for its fourth-quarter financials, Tasco posted a 18.1% y-o-y dip to Rm17.86mil while its revenue increased marginally by 0.7 % y-o-y to Rm268.46mil.

Its IBS segment was hit by reduced revenue due to lower contributions from air and ocean freight forwarding divisions.

On the other hand, the DBS segment saw an improvement in revenue thanks to improved contributions from the customs clearance and haulage businesses, as well as the cold supply chain division.

The group declared a dividend of 2.35 sen per share amounting to Rm18.8mil for FY24, payable on May 31.