Net operating loss for period puts it behind 2017 performance
Toll has seen its June quarter revenue rise swamped by costs increases, parent company Japan Post reports, with China’s economic slowdown blamed.
Having seen an earnings before interest and tax (EBIT) loss of $9 million the same quarter of 2017 rise to an A$8 million profit in the same quarter last year, this year’s corresponding quarter has fallen into the red by $24 million.
“Operating income slightly increased by A$34 million year-on-year (an increase of 1.7% year-on-year; a decrease of 5.3% year-on-year on a Japanese yen basis due to the impact of exchange rate fluctuations) since, although operating income in the Global Logistics maintained a continuous increase, the growth was slowed primarily by the deceleration of the Chinese economy,” Japan Post’s quarterly financial report for the International Logistics Business segment that includes Toll, JP Toll Logistics and Toll Express Japan states.
“Net operating loss (EBIT) for the three months ended June 30, 2019 was recorded of A$24 million.
“This resulted from an increase in operating expenses, including an increase in unit personnel expenses and an increase in other expenses due to temporary factors, which exceeded an increase in operating income.”
Read about Toll’s turnaround effort despite ‘harsh’ conditions, here
Any bouyancy in the segment has come from the segment has been down to global logistics operations. But that saw its EBIT profits more than halve from $36 million for the quarter in 2017 and $31 million last year, to $15 million this year.
The global forwarding, global forwarding and corporate/other operations have only run losses in that time.
The figures have been subject to a change in International Financial Reporting Standards (IFRS) rules group-wide for leases, whereby lessees are required to, in principle, record assets and liabilities for all leases on the balance sheet.
However, the group states: “The effect of this change on profit and loss for the three months ended June 30, 2019 is immaterial.”