Pos Malaysia narrows loss, eyes stronger second half

KUALA LUMPUR: Pos Malaysia Bhd anticipates continued performance improvement in the second half of fiscal year 2026, despite a tough operating climate. The postal group reduced its first-half pre-tax loss by 30.6% year-on-year to RM55.4 million, while revenue climbed 8.2% to RM982.7 million. For the second quarter ending June 30, 2026, revenue grew by 9% year-on-year to RM481.3 million, with the pre-tax loss narrowing to RM41.8 million.

Pos Malaysia's operating cash flow turned positive, generating RM18.3 million in H1 FY26, compared to a net outflow of RM64.6 million a year ago. CEO Charles Brewer highlighted that these gains demonstrate the transformation program's tangible impact, stating, "We are growing revenue, reducing losses and generating positive operating cash flow."

The group remains optimistic about year-over-year improvement, citing disciplined execution, cost efficiency, service reliability, digital adoption, and progress on postal regulatory reforms. Pos Malaysia expects continued revenue growth, driven by a 3.5% increase from parcel volumes, up 34.3% due to e-commerce demand. The company aims to focus on disciplined volume growth, yield improvement, cost efficiency, and network optimization while upholding its Universal Service Obligation.

Pos Aviation's first-half revenue rose 14.2% to RM210.5 million, with pre-tax profit increasing 60% to RM9.9 million, driven by higher inflight catering and station-handling volumes. Pos Logistics also improved, cutting its first-half pre-tax loss by 45% to RM13.8 million and revenue climbing 24.1% to RM125.8 million. Pos Malaysia's financial resilience improved after issuing RM300 million under its RM1 billion Perpetual Sukuk Wakalah Programme in March, boosting total equity to RM327 million as of June 30, 2026.