PETALING JAYA: GD EXPRESS CARRIER BHD’s (GDex) earnings dropped 96% to RM210,000 for the third quarter (Q3) ended March 31,2020, from RM5.4mil in the corresponding quarter last year due to disruption from the Movement Control Order (MCO).
However, the express delivery and logistics group saw its Q3’20 revenue increase 13.2% to RM88.2mil from RM78mil thanks in part to contribution from its newly acquired Vietnam subsidiary company.
GDex’s shares rose 7.5sen to close at 44.5 sen yesterday.
In its filings, the company said the decline in its earnings for the quarter in review was mainly due to most of its business-to-business non-essential customers’ operations being affected by the MCO and the disruption of the supply chain at the ports and the airports as well as the impact of MFRS 16 accounting standards on leases assessment and adjustments.
For the cumulative period, GDex’s net profit fell 52% to RM10.8mil, or 0.19 sen per share, from RM22.6mil, or 0.40 sen per share, in the nine months to March 2019, while its revenue grew 9.9% to RM258.7mil from RM235.3mil previously.
“The group’s performance for the quarter under review was greatly influenced by the outbreak of Covid-19 pandemic, which sees the disruption of supply chain since January 2020. The MCO imposed by the Government since March 18 has impacted economic activities, but it has also triggered a wider adoption of digital technologies among businesses and consumers, ” GDex said.
Commenting on its prospects, GDex said the group expected to see positive volume growth coming from digital platforms, in all segments including business-to-business, business-to-consumer and consumer-to-consumer. It added the group would have to adjust to the evolving business environment.