Half year results for local and international Japan Post business see plunge into red
Toll’s Kimberly-Clark DCs are in concert
Toll has all its Kimberly-Clark, with all related warehousing operations in Victoria, Queensland and Perth having ‘gone live’.
Joining the regional and national distribution centres in Erskine Park NSW, it reports all five distribution centres are now operational for hygiene products firm Kimberly-Clark, one of Australia’s largest fast-moving consumer goods (FMCG) companies.
“This achievement is a credit to our staff and our client.” Jason Bush, executive general manager – retail, consumer and healthcare at the Global Logistics arm, says.
“We look forward to a successful partnership in the years ahead.”
The progress comes as parent company Japan Post’s half-year results this month show the Toll arm’s financial difficulties continuing as it battles difficult market conditions.
Global logistics’ net operating income – formerly a strong suit, with the same period in 2017, at $77 million and 2018, at $72 million, has plummeted to $17 million – while the losses for Global Express at $13 million and $8 million previously, have ballooned to $40 million and the “corporate/other” losses also rose to $33 million, from $22 million and $10 million. Global Forwarding was steady at $6 million, from $8 million and $6 million.
The upshot is a $63 million loss for the period, compared with previous profits of $33 million and $47 million.
“Operating income remained almost flat year-on-year (a decrease of 8.2% year-on-year on a Japanese yen basis due to the impact of exchange rate fluctuations), due to a slowing Australian economy,” Japan Post reports of a Toll segment that includes Toll, JP Toll Logistics and Toll Express Japan.
“While operating income remained stagnant, operating expenses increased by A$115 million year-on-year (an increase of 2.8% year-on-year; a decrease of 5.7% year-on-year on a Japanese yen basis due to the impact of exchange rate fluctuations), owing to factors including an increase in personnel expenses due to core inflation.
“As a result, net operating loss (EBIT) of A$63 million was recorded for the six months ended September 30, 2019.”