Kerry Express (Thailand) Public Company Limited (“KEX” or “the Company”), Thailand’s leading express delivery service, today posted an astounding year-on-year volume growth of 35.7% in the first half of 2022 despite a pullback amid low seasonality. The Company reports Q2/2022 revenue at THB 4,283 million, similar to that of the previous quarter, even with further reduction in price and fewer working days from April to May. 

While our Aggressive Pricing Approach in the previous quarters has proven to be tremendously successful, KEX is also adopting Smart Pricing Strategy at the same time to gain sustainable yield along with greater volume growth. In response to the upswing in fuel prices, a fuel surcharge has been introduced to neutralise such impact though it is subject to adjustment based on the movement of diesel prices and will eventually be lifted when the fuel prices return to normal. Meanwhile, KEX is strictly executing cost reduction programmes including operations revamp to standardise last-mile process with centralised control for cost-effectiveness and productivity optimisation in the long run. KEX expects the impact from cost reduction to accelerate throughout the rest of 2022. 

“Though the second quarter was reined in by multiple challenges, we are confident that we will see a significant improvement in our revenue and profit margin with our cost control initiatives starting to exhibit promising results,” said Mr. Alex Ng, CEO of KEX. “KEX will continue to execute revenue diversification in addition to our core business to foster new growth in the coming quarters and widen our market leadership.”

In line with KEX’s business diversification strategy, KEX is pleased to announce that it has entered into a joint venture with China’s forefront smart locker company Hive Box to establish Thailand’s leading smart locker system. The newly-formed entity will offer end-to-end drop-off and pick-up solutions with the integration of advanced digitisation and automation powered by Hive Box. KEX will continue to look for potential partners to foster growth and welcome new revenue streams.

“Hive Box is almost the only locker solution proven to be successful in China,” Mr. Ng added. “KEX partnering with our strategic partners will carry such unique success into Thailand with the right technology, adequate investment as well as exclusive geographical coverage.”