KUALA LUMPUR (July 26): Tasco Bhd's net profit jumped 55% to RM24.43 million for the first quarter ended June 30, 2022 (1QFY22) from RM15.77 million a year ago, thanks to higher revenue and better profit margin from its international business solutions.

In a filing with Bursa Malaysia on Tuesday (July 26), the logistics solutions provider reported that its revenue grew 56% to RM453.56 million for 1QFY22, from RM290.05 million a year ago, driven by stronger performances across all businesses, including air and ocean freight forwarding, as well as contract logistics division. No dividend was declared.

For the remainder of the year, the group said it is cautiously positive on its performance, especially for 2QFY22.

“We expect that there will be impact arising from the ongoing economic climate to our business in the form of inflationary pressure on costs, as well as operational supply chain issues,” it said.

Nevertheless, Tasco said it is able to pass on the higher energy costs to customers with its fuel adjustment mechanism in customer pricing.

“As for other general cost increase, which affects all industries and businesses, we are also able to pass the cost increase to customers, although there may be a time-lag to effect those increases,” it said.

“Downside risks for our group would be the aforesaid inflationary pressure on operating costs, labour shortages and the risk of recession or stagflation in global or local economy,” it added.

Tasco shares fell 1.5 sen or 1.6% to close at 93 sen on Tuesday, giving the group a market capitalisation of RM744 million.