KEX continues to impress with Q2/2021 profit and generous interim dividend of 0.743 THB/share KEX hits new-highest record of parcel volume, obtains Number One brand for the 4th year and widens its market leadership through great services and continuous business innovations.
20 Aug 2021
KEX has efficiently operated through the pandemic resulting in THB 336 million in profit and a net profit margin of 7.3%. New-highest record of delivery volume of 167 million was achieved during the first half of the year. Pandemic-led online consumption surge along with KEX’s proactive ‘Great & Cheap’ promotional offers, parcel volume grew by 10.8% YoY during the first half of the year. KEX will continue to widen its market leadership through new business partnerships and ventures, strengthening business resilience and sustainable growth.
Mr. Alex Ng, CEO of Kerry Express (Thailand) Public Company Limited, informed the Q2/2021 performance with the results of THB 4,600 million in revenue, representing an increase of THB 412 million or 9.8% growth in revenue from the previous quarter. Net profit was reported at THB 336 million, reflecting an increase of THB 33 million or 10.8% profit growth from the previous quarter, with the net profit margin of 7.3%. Such impressive results are largely driven by series of promotional offers and effective operational cost management led by delivery platform enhancement through automation and technology. The performance of the second quarter met the expectations despite the pandemic situation.
During the first half of the year, parcel volume grew by 10.8% YoY, with the new-highest record of 167 million parcels handled. The volume growth’s associated with KEX’s continuously proactive sales efforts and consumers behaviors towards online consumption influenced by stay-at-home lifestyles and lock-down measures. KEX has been able to leverage its competitive advantage to offer great services at cheap rates to attractively penetrate the economy segment and other commodity markets. KEX was recently awarded with “Marketeer No.1 Brand Thailand 2020-2021” and has been recognised as such since 2017. Nationwide surveys conducted by Marketeer show landslide victory of KEX winning with overwhelming 63.8% of votes from all regions of Thailand, with the second runner-up far behind at 19.1% votes.
“The pandemic disrupts everyone. None are immune to the pandemic’s effects, and we are not benefitting from it, so we need to work harder and smarter. We leverage on our agility and resources to safely and efficiently operate through these challenging times. We will continue to uphold service excellence regardless of how complex the situation is. We also expect to see strong volume growth in the latter half of the year as it’s normally a high season for parcel delivery” Mr. Ng said.
Mr. Alex Ng also mentioned the uncompromising hygiene measures for KEX’s employees and customers. In order to build company-wide health safety, KEX has launched the vaccination campaign, KerryPrompt, to encourage and incentivise all employees to receive the vaccines. KEX is committed to upholding service excellence and keeping our business operational with no temporary closings of distribution centers.
KEX recently collaborated with The Thai Red Cross Society, to be the delivery arms of the home isolation kit boxes consisting of essential medical and food supplies. The kit boxes are scheduled for delivery to isolation facilities and field hospitals for Covid-19 patients and volunteer groups. KEX, as a leading parcel express delivery company, stands together with Thai people during the pandemic.
Corresponding to KEX’s expectation on more incoming parcels in the second half of the year, the company has been prepared to offer a wider range of services in collaboration with KEX’s potential business partners including; Cold Chain or Temperature-Controlled Delivery Platform and shipment of large item services. KEX recently introduced Kerry Wallet to meet the lifestyles of online sellers and shoppers, enhancing e-commerce and social commerce ecosystem. Kerry Wallet is expected to launch in Q4/2021. The wallet also serves as a tool to retain money and activities of KEX’s frequent users in KEX’s ecosystem.
With solid performance, excellent financial strength and abundant liquidity, the Board of Directors has approved the interim dividend at the rate of THB 0.743 per share. Record Date for the rights of shareholders to receive the dividend and the date of dividend payment is on 25 August 2021 and 10 September 2021 respectively.