Comfort reports 77 per cent drop in profit for FY20 as pandemic bites

Transport operator ComfortDelGro's net profit for the year ended Dec 31, 2020 plunged nearly 77 per cent year-on-year to S$61.8 million as the pandemic brought activity to a halt.

Revenue slumped around 17 per cent to S$3.22 billion as its operations across seven countries were hampered by lockdowns.

Group operating costs eased 10.9 per cent to about S$3.1 billion in line with slower business, cost saving measures and government relief. Its operating performance was boosted by government relief packages, without which Comfort would have chalked up an operating loss of S$46.2 million instead of an operating profit of S$123.1 million. In comparison, its operating profit a year ago was S$415.8 million.

Meanwhile, earnings per share worked out to 2.85 Singapore cents, down from 12.24 cents a year ago.

Earlier in the year, the group recognised provisions for impairment on vehicles and goodwill of S$48.3 million, although none were taken in the fourth quarter.

ComfortDelGro managing director, Yang Ban Seng, said: "We have seen a steady uptick in business activity especially in the last quarter, and we remain hopeful that gradual global recovery will continue.

"We will double down on our digitalisation efforts and transformation to gear up our businesses to better prepare for and take advantage of recovery opportunities."

A final dividend of 1.43 Singapore cents has been proposed; there was no interim dividend. In 2019, Comfort paid out a final dividend of 5.29 cents, and total dividends of 9.79 cents.

Shares in Comfort closed at S$1.58 on Monday, up one cent or 0.64 per cent.