Courier company Mailpac expects to report a turnaround in fortunes starting as early as the current June quarter when it consolidates the accounts of newly acquired company MyCart Express into its financials.

Mailpac has reported declining earnings and revenues for the quarter ended March 2024, continuing a trend of falling annual performance over the past three consecutive years. The company attributes this decline to a ‘normalisation’ of the market post-COVID-19.

However, Chairman Khary Robinson is banking on the recent acquisition of the fast-growing competitor to change that trajectory for the company in 2024.

“The transaction closed recently so we only have a month and a half of live data but based on the trend, MyCart will add over 50 per cent growth to our top line. We expect the meeting on the name change to be done sometime in Q3,” Robinson told the Jamaica Observer.

The listed company began incorporating MyCart’s accounts into its financials this month, following the completion of the acquisition on March 31, 2024. It marks the second rival acquisition by Mailpac. In 2011, the company acquired close rival Global Couriers which was led by Mark Gonzales. The recent business purchase propels MailPac to the top spot courier platform in the Caribbean, delivering over 1.5 million packages annually, Robinson said.

Mailpac’s board of directors is expected to convene an extraordinary general meeting to propose a rebranding of the group of companies to MyPac Group.

MyPac will operate several independent e-commerce brands including Mailpac which is being positioned as a premium service courier; MyCart, a value-focused courier; Pack Yuh Barrel for digital barrel packing and shipments and Mailpac Local for local online shopping.

By June shareholders should start to see improved valuation.

For the first quarter ending March, Mailpac reported revenues of $368.5 million, down 7.8 per cent when compared to the similar period of the prior year. The company said the dip in revenue performance was primarily due to a reduction in Mailpac Local and commissions from the Aeropost marketplace platform.

Earnings of the company also dipped 16.7 per cent year on year to $50.1 million on higher expenses compounded with the fall in revenue. Operating expenses for the first quarter totalled $130.8 million, a 13.6 per cent increase from the previous year, driven by strategic investments in business growth and data protection remediation efforts.

Meanwhile, Mailpac’s total assets were valued at $626.3 million as at March 31, with a cash position of $156.2 million. Shareholder’s equity stood at $537.9 million, indicating robust financial health.