For the fiscal period ended on June 30, 2024, logistics player Tasco reported revenue of RM249.9 million, a decline of RM3.3 million or 1.3 per cent from RM253.2 million the previous year. The group reports profit after tax of RM7 million which was 50% lower compared to the RM14 million recorded in 1QFY24.

Rasco highlightes that its International Business Solutions (IBS) segment's revenue increased by RM15.6 million, or 18.3 per cent, from RM85.2 million to RM100.8 million year-on-year. However, the Domestic Business Solutions (DBS) division saw an y-o-y of 11.2 per cent fall in sales, down from RM168.0 million to RM149.1 million.

In the International Business Solutions (IBS) segment, the Air Freight Forwarding (AFF) division increased by RM13.0 million (25.7 per cent) from RM50.7 million to RM63.7 million y-o-y. The increase was largely contributed from a FMCG and aerospace customers. Whilst revenue of the Supply Chain Solutions Division (SCS) was spiked up from RM6.9 million to RM10.0 million, an increase of RM3.1 million (45.0 per cent) on the back of increased business from Order Management. However, the revenue increases in AFF and SCS segment was partially offset by the revenue drop in OFF division. Revenue of OFF division declined by RM0.5 million (1.9 per cent), from RM27.6 million to RM27.1 million y-o-y. This decrease in the OFF was arisen from reduced shipments from electric glass and insulation building material customers.

The group said due to higher costs from higher buying freight rates, coupled with a one-time charge of RM3.6 million due to
the demolition of previous HQ office at its Shah Alam Logistics Centre (SALC) to make way for the extension of the 4-storey warehouse, caused its profit for the period dropping by almost half.

But noted that the extension of our 4-storey warehouse will create another 400,000 square foot of lettable space, which will be joined to the existing new 4-storey warehouse of 600,000 square foot. Construction has already commenced and is anticipated to be fully completed in 2026.

Going into the remaining period of the financial year, it anticipates a challenging operating environment.