Charles Brewer: the hard work to reshape Pos Malaysia is delivering measurable progress

For Q2 FY2026, Group revenue rose 9.0% year-on-year to RM481.3 million, while loss before tax narrowed to RM41.8 million. Net operating cash flow turned positive at RM18.3 million for H1 FY2026, compared with a net outflow of RM64.6 million in the corresponding period of FY2025, underscoring tangible progress from the Group’s ongoing transformation programme. For the first half of FY2026, revenue increased 8.2% to RM982.7 million, while loss before tax narrowed by 30.6% to RM55.4 million.

The improved performance was supported by positive momentum across all business segments, stronger parcel volume growth, improved contributions from Pos Aviation and Pos Logistics, and growth from the Group’s other businesses, including digital certification, data services and Pos Ar-Rahnu.

Charles Brewer, Group Chief Executive Officer of Pos Malaysia, said, “Q2 shows that the hard work to reshape Pos Malaysia is delivering measurable progress. We are growing revenue, reducing losses and generating positive operating cash flow, while continuing to strengthen the basics of the business. The market remains tough, but our focus is clear: run the business with discipline, improve service and productivity, and build a more sustainable Pos Malaysia that continues to serve every Malaysian.”

“We are building a Pos Malaysia that is more resilient, more efficient and more relevant to the communities and businesses we serve. Our priority is to keep strengthening the core business, while using digital and AI in practical ways that improve service, productivity and customer experience. At the same time, we will continue to work constructively with the Government and Malaysian Communications and Multimedia Commission (“MCMC”) on reforms that support a sustainable postal ecosystem. There is still much to do, but the progress we are making gives us confidence,” he added.

Postal Segment

The Postal segment recorded a 3.5% year-on-year increase in revenue, driven by strong parcel volume growth of 34.3%. This reflects the Group’s strengthened market position, supported by improved service reliability and the continued expansion of Malaysia’s e-commerce ecosystem. Management will continue to pursue disciplined volume growth, with a focus on yield improvement, cost efficiency and network optimisation.

The Group remains committed to delivering its Universal Service Obligation (“USO”), serving and connecting all Malaysians equitably especially those in rural and underserved communities. On the regulatory front, the Group is encouraged by the Government’s continued engagement and the commitment to review the Postal Services Act 2012 and the establishment of the Postal Services Fund (“PSF”) to ensure the sustainability and continued delivery of the universal service. The Group will continue to work constructively with the Government and the MCMC towards implementation of the Postal Services Act 2012 and a sustainable USO framework, which the Group views as critical to the long-term financial sustainability and in order to ensure Malaysians remain connected.

Pos Aviation

Pos Aviation delivered a strong quarter, underpinned by higher inflight catering and station-handling volumes. For H1 FY2026, revenue increased 14.2% year-on-year to RM210.5 million, while profit before tax improved by approximately 60% to RM9.9 million. The segment remains well positioned to sustain its positive trajectory, supported by expanding airline partnerships, broader service capabilities and continued prudent oversight of geopolitical and operational risks.

Pos Logistics

Pos Logistics continued to progress its turnaround, supported by restructuring initiatives and stronger performance across automotive logistics, freight management, warehousing and marine operations. For H1 FY2026, the segment reduced loss before tax by 45.2% to RM13.8 million, compared with a RM25.2 million loss in H1 FY2025, while revenue grew 24.1% to RM125.8 million. The core logistics business will remain focused on expanding third-party logistics capabilities, optimising costs and improving productivity to support sustainable improvement.

Others

The Group’s other businesses, comprising Pos Digicert’s digital certification services, Datapos and Pos Ar-Rahnu’s gold financing business, delivered a strong first-half performance. Revenue grew 11.3% year-on-year to RM105.3 million, while profit before tax improved by approximately 78% to RM23.3 million. Growth was principally driven by robust demand for digital certification solutions, higher printing and insertion volumes, and the continued expansion of Pos Ar-Rahnu’s financial services. The launch of the Gold-i digital gold investment platform in July 2026 is expected to further broaden the segment’s revenue base and enhance financial inclusion for Malaysian consumers.

Strengthening Financial Resilience

The Group’s balance sheet was materially strengthened by the issuance in March 2026 of the RM300.0 million first tranche under its RM1.0 billion Perpetual Sukuk Wakalah Programme. The issuance lifted total equity to RM327.0 million as at 30 June 2026, from RM89.2 million as at 31 December 2025.

Outlook for FY2026

The Group enters the second half of FY2026 on a stronger footing, supported by improved revenue growth, narrower losses, positive operating cash flow and a strengthened balance sheet. While market conditions remain challenging, Pos Malaysia remains cautiously optimistic of continued year-on-year improvement, underpinned by disciplined execution of its transformation agenda, cost efficiency, service reliability, digital and AI adoption, and continued progress on postal regulatory reform.