Kerry Express Posted Improved Quarterly Earnings & Continuous Volume Growth

15 Nov 2022

Kerry Express Posted Improved Quarterly Earnings & Continuous Volume Growth, Thanks to Sharp Dedication to Cost Control, Strong Support from SF, and Determined Execution of Market Leadership Strategy

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Kerry Express (Thailand) Public Company Limited (“KEX” or “the Company”), Thailand’s leading express delivery service, today reported improved quarterly performance, narrowed down net loss by 8% QoQ, regaining upward momentum, along with continuous year-on-year volume growth of 5% amidst lackluster macroeconomic conditions, rapidly rising inflationary pressure, lower consumer purchasing power as well as weaker sales efforts by the e-commerce sector. Following our disciplined operating efficiency enhancement and cost-control approach, the cost of sales and services has been on a downward trajectory, dwindled by 6% YoY and 3% QoQ amidst the upsurge in diesel price.

The unique industrialisation and platform upgrade of KEX have enabled us to effectively manage the total costs and resources. The Company has implemented last-mile optimisation and redundancy minimisation between hubs and distribution centres, and will continue to leverage resources to seek cost reduction opportunity and assure sufficient supply. We expect the impact of cost reduction to accelerate and carry well into the incoming quarters.

“We will maintain sharp focus on cost control and efficiency enhancement as well as enlarging volume base to drive earnings improvement. Thanks to our strong reinforcement, KEX and SF have formed the co-taskforce dedicated for efficiency improvement through technology, network planning & route optimization and sorting equipment upgrade. We are transplanting best practices, techniques and references from SF China as we expect such co-taskforce to contribute to substantial efficiency improvement, consequential cost improvement which will reflect in improved earnings.” Mr. Ng added.

KEX continues to widen our market leadership relentlessly. Apart from our online penetration via latest collaboration with TikTok Shop, we also have adopted the reseller model in partnerships with fourth-party logistics (4PL) and Thailand’s leading retail brands, strengthening our presence in all segments with the number of service locations to over 37,000 nationwide. 

In line with KEX’s business diversification strategy, KERRY COOL has satisfactorily captured substantial demand and enlarged its client portfolio including Thailand’s leading chains of restaurants, reflected in substantial revenue growth. In addition, KEX also recently unveiled our brand-new international parcel delivery service spanning over 50 routes in 45 countries, co-powered by SF International. Such synergy will add tremendous value to our core express business in Thailand.