Led by market leadership strategies and aggressive pricing approach, Kerry Express (Thailand) Public Company Limited (“KEX”) achieved another quarter of stellar performance in Q1/2022 with the highest-ever parcel volume and growth of 46%, outperforming that of Q4/2021. The total revenue of THB 4.4 billion as well as the improved earnings of 19% from the last quarter are a testament to our aggressive pricing approach and effective cost control while the overall market continues to grapple with higher production costs brought about by the rising oil prices, ongoing inflation pressure, tightening labour market, and uptick in economic recovery in Thailand. Following our disciplined operating efficiency enhancement, the cost of sales and services, which has been on a downward trajectory, dwindled 10% from the last quarter to THB 4.6 billion. 

Together with a zero-debt balance sheet, KEX is well-positioned to expand its operation capacity to accommodate up to 3 million parcels/day as the Company enters the upcoming high season while retaining spare resources to maintain service excellence during the time of uncertainties without interruption. Under the unique industrialisation and platform upgrade of KEX, the Company will continue to leverage resources to seek cost reduction opportunity and assure sufficient supply. By adopting the reseller model in partnership with fourth-party logistics (4PL), KEX has successfully strengthened its presence in the economy segment and brought the number of service locations to over 31,000 in response to the growing market demand. To further fuel long-term competitiveness and build sustainable growth, KEX will continue to execute its robust pipeline of projects, including the flagship programme which will enable the Company to offer an immersive experience and penetrate into the C2C sector. Underpinning the Company’s business diversification strategies in 2022 are KERRY COOL, Kerry XL, KERRY WALLET, and other pioneering projects underway which are set to reach full operations within this year. 

Following the share acquisition of Kerry Logistics Network Ltd. by S.F. Holding Co., Ltd. last year, KEX is now working at the stage of full operation. Looking ahead, KEX expects cross-border business activities to and from Greater China in line with the Company’s long-term vision to enhance international coverages. 

“Amid the industry’s heated price competition that coincides with the current economic backdrop where players are seeing their sales retreating, KEX is now adopting the smart pricing scheme following the tremendous success of our aggressive pricing strategy. Following the rise in the starting prices of parcel shipments in the market in the previous quarter, we expect intense competition in the market to ease and foresee market consolidation in the express delivery industry in the medium term with the new bar being cost-effective services, drawing barriers for new players to enter the market. This vision is the foundation of our business direction and various preparations for a sustainable future of the Company,” said Mr. Alex Ng, CEO of KEX. “We remain committed to express delivery business as the core of our operations and strive to strengthen the leader position in the Thai delivery market.”

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