Mailpac sees decline in international shopping
E-commerce firm, Mailpac Group Limited is reporting revenues of $730.9 million for the six months ended June 30, 2020, with net profit totalling $189.74 million.
Executive Chairman of Mailpac, Khary Robinson cited a “meaningful decline” in international shopping in April due to the impact of COVID-19.
However, he said the company had achieved its highest ever quarterly revenue, supported by an increase in local shopping.
Robinson disclosed that the company also saw a “short-term decline” in the international business in the June quarter.
Nonetheless, there was a commensurate increase in local shoppers who purchased household and office supplies amid limitations on movement and social interaction, Robinson said.
Robinson, in comments attached to the six months' report to shareholders, said the company is “currently exploring a number of strategic initiatives to serve a broader base of customers and have a deeper share of wallet with our current ones.”
The chairman said the sustained impact of COVID-19 has led to significant uncertainty in the consumer space.
“We anticipate that the crisis will continue to present challenges and opportunities for our industry. Accordingly, Mailpac remains focused on delivering the highest level of e-commerce solutions and service in the industry,” Robinson stated.
Revenue for the June quarter was $366.1 million, which was $1.4 million higher than the previous quarter ending March 31, 2020, while net profit was $87.83 million.
Mailpac Group consolidated the operations of Mailpac Services and Mailpac Local, the two e-commerce businesses owned by Norbrook Equity Partners (NEP) and founded by Robinson in 2019.
The group includes Mailpac Services, formerly MailPac Express, which offers e-commerce fulfilment services from the United States to Jamaica and MailPac Marketplace for cross-border online shopping with local landed prices.
Other units are Mailpac Local which facilitates local online shopping and delivery from local retailers; Mailpac Financial Services for online shopping financing; Mailpac Card, a branded MasterCard for shopping online; and Mailpac Ocean Freight for sea freight shipping and brokerage services.
Mailpac’s operating expenses for the June quarter were $68.6 million. This, Robinson said, was significantly lower than the previous quarter with reductions in staff costs, advertising expenses, and store operating expenses.
Robinson stated that the amalgamation of our two business lines, Mailpac Services and Mailpac Local, proved to be “a tremendous diversification tool” as intended.
Total company assets at the end of the quarter stood at $616.2 million, which included $276.6 million of cash. Shareholder’s equity stood at $543.4 million at the end of Q2 2020.
Noting that the group was not in operation before, Robinson said there is no comparative data.