Swift Haulage aims to utilise warehouse expansion
15 Nov 2022
Despite the significant drop in international ocean freight and shipping charges compared to last year, Swift Haulage Bhd is looking to expand its customer base domestically and regionally to utilise its recent warehouse expansion.
The expansion of its warehouse was completed in the third quarter of its financial year 2022 (3Q22) which saw its capacity increase by about 46%.
In an announcement of its results for the third quarter ended Sept 30, Malaysia’s largest haulier and leading integrated logistics service provider said: “As the domestic markets activities have restored to normal from the pandemic, all sectors are increasing their production capacities which are benefiting our business.”
Swift Haulage said the growth of the logistics sector in the country is correlated with the growth in Malaysia economic activities as well as international trade as logistics a crucial factor for Malaysia being a trade-dependent and export-oriented nation.
“These are supported by the increase in port throughput for the five major ports of Malaysia for the nine-month period to-date against the same period last year,” it said.
Commenting on domestic shipping between East and West Malaysia, the group said it is more stable with consistent cargo volume and favourable freight rates, supported by higher throughput in 2022.
The group’s revenue for the 3Q22 increased to RM159.25mil compared with RM133.54mil in the previous corresponding quarter last year.
Revenue was primarily contributed by the container haulage segment that made up RM69.5mil of its topline and land transportation segment which contributed RM51.3mil of the quarterly revenue. These segments collectively represented 75.8% of the group total revenue.
Other business segments namely, warehousing and container depot and freight forwarding contributed RM21.2mil and RM16.4mil, respectively.
Swift Haulage’s net profit for the quarter was flat at RM11.72mil compared with RM11.36 in 3Q21.
For the first nine months of its financial year 2022 (9M22), the group’s revenue was up by about 11% year-on-year (y-o-y) or RM48.81mil to RM479.67mil compared to last year’s corresponding period.
The improved revenue was mainly driven by the easing of Covid-19 restrictions and recovery in business activities, the company.
A bulk of 76.6% of its revenue in 9M22 came from its container haulage and land transportation segments, contributing RM210.1mil and RM157.4mil, respectively.
“Our warehousing and container depot and freight forwarding business contributed RM60.6mil and RM50.6mil, respectively, to the total group’s revenue for 9M22,” it said.
In line with the higher revenue recorded for the 9M22, net profits surged by over 16% y-o-y or RM5.63mil to RM39.22mil.
Swift Haulage group chief executive officer Loo Yong Hui said: “Our results continue to be driven by the robust container haulage and land transportation segments.”
He added, on a y-o-y basis, all segments have performed better due to the easing of Covid-19 restrictions and an overall recovery of business activities domestically.
On its memorandum of understanding with Volvo Malaysia Sdn Bhd on Aug 15 for a collaboration aimed to promote and introduce electric trucks in Malaysia, Swift Haulage said it has signed a purchase order to procure Volvo electric trucks.
It said any material development will be announced to the local bourse in due course.
Source: The Star
