Chasen Q1 net profit up five times to S$1.6m amid recovery from Covid-19 impact

LOGISTICS firm Chasen Holdings' net profit after tax rose to S$1.6 million for the first quarter ended June 30, some five times higher than the S$257,000 profit in the year-ago period, lifted by a recovery from initial Covid-19 disruptions to its business last year.

In a quarterly business update on Tuesday, Chasen said its Q1 FY2022 results were also boosted by the resumption of projects and new contract wins.

Revenue grew 70 per cent to S$42.3 million in the quarter, from S$24.9 million a year ago, on the back of an increase in sales across its business segments.

The company said revenue contribution from its third-party logistics segment has increased due to higher demand for cross-border land transportation, driven by continued disruptions to air and sea transportation.

Chasen said more than half of its customers who had migrated to cross-border land transportation have indicated they intend to adopt it as their primary mode of cargo movement going forward, even as the challenges faced by air and sea freight operators have eased.

It added that it has also seen sustained growth for its warehousing services amid increased e-commerce activities due to pandemic-related restrictions.

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Meanwhile, Chasen said its specialist relocation as well as technical and engineering segments have secured new projects even as earlier projects delayed due to Covid-19 were restarting.

"We have delivered a good set of results this quarter, and expect business momentum to continue improving in the coming months," said managing director and chief executive officer Low Weng Fatt in a statement.

"With continued focus on our cost-restructuring efforts, we hope to incrementally scale activities on a leaner cost structure to improve our cost competitiveness and bottom line," he added.

Chasen shares closed 1.5 per cent or 0.1 Singapore cent higher at 6.8 cents on Friday.

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