HONG KONG's freight forwarding and logistics group, BALtrans Holdings Ltd, has reported its net annual profit for 2007, ending July 31, fell 45 per cent to HK$62.5 million (US$8.03 million) from last year's because of weak airfreight performance and restructuring costs related to acquisitions.
The drop was blamed on soft eastbound transpacific airfreight, costs of financing acquisitions, the buyout of the former CEO, mainland business restructuring costs, and a higher taxes because of overseas expansion.
EBITA dropped from HK$140.9 million to HK$137.1 million partly due to start-up losses of new Atlanta and French offices and global branding consulting fee expenses.
Weaker pre-tax earnings came despite record annual revenue of over HK$4.63 billion, up 14 per cent from the previous year.
Gross profit jumped 32 per cent to HK$873.7 million, and gross margin improved from 16.3 per cent to 18.9 per cent on the back of new businesses in the Europe, the Middle East and Africa (EMEA) region, enhanced buying power with increased business volume and intra-network co-operation, a group statement said.
"I am pleased to report the fifth record-breaking year in a row for our revenue," said chairman Anthony Lau.
"Growth was brought forth by green-field set-ups, acquisitions and organic growth in the EMEA region. Although our profit was temporarily impacted by our businesses and management restructuring, the initiatives are set to maximise our shareholder value in the long run," he said.
The Asia Pacific region continued to be the group's largest revenue contributor, accounting for 52 per cent of revenue after intra-group sales eliminations. Revenue decreased by seven per cent to HK$3.05 billion, due to the streamlining of business revenue base in China and Taiwan.
The EMEA region recorded revenue of HK$1.79 billion, a year on year increment of 173 per cent, attributable to the full year inclusion of new subsidiaries in Germany, South Africa, Sweden and the turnover growth in the Netherlands and the United Kingdom.
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