Mailpac Group Ltd (JSE:MAILPAC)

Definitely looking forward to this ?#mailpac

Mailpac Group, which is heavily into the e-commerce solutions business, has, through its Mailpac Local subsidiary, launched an online grocery store to grow market share, with a plan to retail products some five to 15 per cent less than traditional... »» View story

   • 3 years ago  • 1

Good sign for #mailpac

As some businesses reel from the effects of the novel coronavirus pandemic, others are reporting steady growth. Managing director of Aklamar Courier Marlon Fletcher gave his account of how his business has performed since the start of the pandemic.'Business has been great for me, I would not say that it has doubled, but it has surely maintained what I use to do pre-pandemic.'About 99 per cent of Aklamar's business has to do with dealing with offices and performing tasks like picking up cheques and going to the bank or tax office. In fact, most of the company's customers are on a retainer, so they pay a flat rate.But, as the managing director explains, the pandemic has created demand in other areas which have been financially rewarding. 'I see the increase coming from individual deliveries,' said Fletcher. He said it's been a steady 40 per cent increase, primarily due to demand in the food delivery business.Before the pandemic Aklamar was described, primarily, as a documentation courier company, but all that is beginning to change. 'What I'm seeing, from my side, is that a lot of people are now staying home, so you find that the demand for personal courier service has increased significantly. We're doing a lot of home visits now and we used to do probably two home visits per day pre-pandemic, during the pandemic we have been doing 10 to 20 home pickups and deliveries per day.'Aklamar Courier is not the only entity experiencing good fortune in the middle of the pandemic. Just last month Knutsford Express Services announced the introduction of business class service and the addition of international package delivery. The new business lines were added since the start of the new financial year.CEO of Knutsford Express, Oliver Townsend, said since the onset of the novel coronavirus pandemic the company has pivoted to expand courier services. He explained that package volumes climbed nearly 200 per cent since March 2021, contributing significantly to earnings. Similarly, Mailpac Group, which provides international and domestic courier services for people ordering goods from various businesses, including Amazon and PriceSmart, has experienced a surge in growth. This, as more consumers choose e-commerce to source products for their everyday needs.Despite seeing its cost of sales jump by 35 per cent in the first quarter, Mailpac spent $22 million in capital expenditure and leased new properties to allow the company to sufficiently manage the increased business activity. In the same vein, Fletcher highlighted that the Aklamar team expanded by about 10 to 15 per cent of its delivery personnel, 'I've also added an additional dispatcher to field the calls and messages that are coming in on a daily basis.'But there's even more growth on the horizon. Fletcher explained that Aklamar is in the final stages of negotiating a new contract with about three companies which will make out of town courier services more lucrative for his business. Currently, he only operates in the Kingston, Portmore, and Spanish Town area.'Other courier companies, namely Tara and Knutsford Express, have dominated the out of town market by way of literally transporting people. So they just put courier service into the bottom of the bus and they are able to charge a significantly reduced rate for a delivery from let's say Kingston to Montego Bay. We did not venture into out of town deliveries on a one-on-one basis because the demand was just not there and I would be operating at a loss to go to Montego Bay, for example, with two or three deliveries,' he explained.Although business is doing well, Fletcher admitted that there are a few challenges. 'From time to time we get a little resistance because I guess the officer on the ground may not be familiar with the gazetted order that is published every time the prime minister would have announced new measures. It's part and parcel of the stigma that surrounds bikers overall. But all my staff have their IDs, letters, and the bikes are company bikes, which are branded, fully licensed, and insured.'In the meantime, the courier service provider said he has ventured into contactless deliveries to facilitate people who are afflicted with COVID-19. He says it's the latest pivot which has already started to pay dividends. »» View story

   • 3 years ago  • 1

For the #mailpac investors

DESPITE COVID-19, Mailpac Group Limited has seen its business accelerate as it positions itself to be the provider of 'need' in the current challenging environment for many people who are making the adjustment to the new way of life. The company which listed in December 2019 on the Junior Market of the Jamaica Stock Exchange has been one of the largest beneficiaries of the pandemic due to consumers' need to source online goods that make life more manageable in the stay-at-home environment.Although Mailpac had projected its revenue to be $1.32 billion with a net profit of $317 million for 2020, the logistics company ended up setting a record for revenue which topped $1.72 billion and net profit finishing at $442.72 million, which were ahead of its 2022 projections.Even with all these results the young company's Chairman Khary Robinson reminded the Jamaica Observer' s Sunday Finance that Mailpac has had to constantly address new opportunities and challenges which came about because of the pandemic.'Mailpac has had to evolve tremendously during COVID-19 for a number of reasons. Firstly, the demands on our services expanded exponentially, forcing us to quickly and efficiently expand our infrastructure and operating capacity.'Secondly, new areas of opportunity emerged which we addressed through a mix of strategic initiatives or acquired solutions. But most importantly, the nature of our business changed from being a provider of 'want' to a provider of 'need'. People and their families became dependent on us to ensure they had the necessary supplies and items to get by during these challenging times. This meant we had to strive for perfection in all areas within our control. We listened more to our customers and adjusted to meet their demands. The evolution is still ongoing but it has and continues to be a welcomed one,' said Robinson who is also executive chairman of Norbrook Equity Partners which has notable subsidiaries such as Express Fitness, Hertz, Pure National Ice and Epay.Mailpac's line of business has made it relatively immune to the pandemic since it has managed to operate longer hours and avoid closure due to it being deemed essential. Even with the three upcoming weekends of lockdown, Robinson noted that since the company is a courier platform, they'll be eligible for a waiver to operate up to midnight.Despite the company incurring a significant jump in costs during the fourth quarter which included chartering a plane, Robinson said: 'Our long-term partnership with our airlift partners has allowed us to have supportive and constructive dialogue. These talks have led to greater commitment and support from these providers who will be increasing airlift capacity significantly in the next few weeks and into the future. We have the same goal of serving the evolving need of consumers but their infrastructure makes pivoting a slower process for them.'Even with the company generating more than $100 million in cashflow from operations each quarter, Robinson explained that Mailpac's focus hasn't deviated from its usual modus operandi.'We position ourselves the same every year. We assess where we were and what we need to improve or introduce to continue to lead the market. We then set targets around those elements as well as our traditional targets for customer service and growth. We then invest time and resources in developing those solutions that allow us to achieve or supersede those targets.'The company's stock has performed significantly over the last year, with the one-year return between February 2020-2021 being 95 per cent - the highest return on the Junior Market. It's even more notable that Mailpac's stock price hit an all-time low of $1.20 during the market sell-off and peaked recently at $4.43.Through its partnership with Pricesmart and a growing line of other businesses, Mailpac's local operation has been booming as customers choose it to source their goods rather than join the flock of people rushing ahead of the lockdown. Even as his 'Pink Army' prepares for the unknown, Robinson believes that Mailpac's new investments will bear fruitful returns for the company which is planning to establish its Caribbean presence.'From our new lockers to our electric vehicles, Mailpac is working feverishly to stay on the cutting edge of excellence. We want people to associate our brand with more than packages. We are always looking to expand the scope and scale of our business which ranges from geographical expansion to the range of supply partners we work with at any given time. We are fanatical about making the lives of our customers better and spend all our strategic capacity figuring out how we will 'wow' the market with service, speed, quality, and care. We want to be the brand of innovation, of convenience, of service and of leadership. We are getting there day by day,' Robinson said. »» View story

   • 3 years ago  • 4

#mailpac

Mailpac Group Limited Financial Report -Dec 2020 The post Mailpac Group Limited (MAILPAC) Unaudited Financial Statements for the Period Ended December 31, 2020 appeared first on Jamaica Stock Exchange. »» View story

   • 3 years ago  • 7