Malaysia-listed freight service provider Freight Management Holding posted profit of MYR4.73 million (USD1.33 million) for the third quarter that ended on 31 March 2015, down 22% from profit of MYR6.13 million in corresponding period last year.
Revenue increased slightly by 5% to MYR101.7 million in the third quarter of 2015, as compared with MYR96.6 million in the third quarter of 2014. The revenue growth was due to high contribution from the company’s sea freight and air freight divisions.
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However, the company’s third-party logistics (3PL) and warehousing, customs brokerage, haulage, and land freight divisions have recorded decrease in revenue. This was mainly due to the cessation of a 3PL customer and also the temporary closure of a warehouse for renovation.
In the meantime, the company had incurred higher business costs, as evident from the 45% year-on-year increase in its finance costs to MYR700,000, while its operating expenses improved 6% to MYR96.7 million in the third quarter of 2015, as compared with MYR91.3 million in the corresponding period the year before.
Freight Management Holding remains upbeat for the last quarter of the financial year, which will end on 30 June 2015, as the third quarter is historically a slow quarter for the firm. The company expects its sea freight division to continue to drive business growth. In the meantime, Freight Management Holding will continue to seek for opportunity to grow where long-term strategic investments and joint ventures both locally and in the region for future growth.