President Transnet sees 10% revenue growth this year

EARNINGS DRIVER::The delivery specialist expects to contribute NT$200 million to the income of its major shareholder, President Chain Store Corp, this year

By Amy Su  /  Staff reporter

Tue, Dec 18, 2012 - Page 14

President Transnet Corp (統一速達), a home delivery service provider mainly held by President Chain Store Corp (統一超商), expects revenue this year to grow about 10 percent, backed by the rising popularity of online shopping, a company official said yesterday.

The increase in revenue should boost profits, helping it contribute about NT$200 million (US$6.87 million) in income to President Chain Store this year, President Transnet president Robin Hsu (許晉彬) said.

President Chain Store has a 70 percent stake in President Transnet, which manages the Takkyubin (宅急便) delivery service in Taiwan, while Uni-President Group (統一集團) and Japan’s biggest home delivery service provider Yamato Transport Co holds 20 percent and 10 percent respectively.

“We expect company revenue to grow about 10 percent this year, lower than its long-term average of about 20 percent, because of the impact of the weak economic sentiment,” Hsu told a media briefing.

Company sales reached about NT$6 billion last year, which could rise to more than NT$6.5 billion based on the 10 percent growth projection.

The sluggish economic momentum also dragged down reservation orders for holiday gift boxes, further impacting company sales in the business-to-business-to-consumer (B2B2C) segment, Hsu said.

However, the rising popularity of Internet shopping helped support business-to-consumer (B2C) sales, which accounted for about 80 percent of company sales, he added.

This year, transport volume is expected to reach President Transnet’s internal target of 70 million deliveries, more than 50 percent higher than last year, President Transnet said.

The firm also expects to maintain its share of more than 40 percent of the local market.

With the local economy expected to see a mild recovery next year, Hsu said the company was sticking to its target of 20 percent growth in both transport volume and revenue next year.

President Transnet’s net income totaled NT$209.32 million in the first three quarters of the year, contributing NT$149.16 million in profits to President Chain Store during the period, company statistics showed.

President Chain Store posted NT$5.6 billion, or NT$5.38 per share, in net profit in the first nine months of the year, up 2.6 percent from a year earlier, data showed.