Kerry Express makes strong entrance into 2021 with 13% YoY rise of parcel volume
13 May 2021
Kerry Express (Thailand) Public Company Limited, or “KEX”, today reported its performance result for the quarter ended March 2021. On the backdrop of prolonged Covid-19 pandemic and gloomy economic situation, KEX boosted its parcel express delivery volume by 13 percent year-on-year, largely driven by the company’s strong sales actions launched since the beginning of the year. Starting Q1/2021, KEX is upgrading its delivery platform and systems. At completion, KEX’s service quality will be further improved, and its network efficiency will be incomparable by any regional or domestic peer. In 2021, to widen its market leadership position, the company has been moving forward in placing more aggressive pricing strategies, to barter with more volume that enables KEX to shift down the cost curve and penetrate into the economy segment.
According to the company’s financial results, KEX generated sales and service income and net profit of THB 4,188 million and THB 303 million, with B2C and C2C segments as the key drivers, contributing 47.3 percent and 50.8 percent of its sales and service income respectively. The expected drop in revenue, roughly 13%, was associated with the proactive reduction in price per parcel. The other factors include the prolonged impact of Covid-19 causing softer consumption power which shifted majority of the demand to smaller or cheaper parcels, resulting in the lower in yield. In addition, there are fewer number of operating days during the period compared to Q1 last year. Despite this, KEX continued to put heavy emphasis on upgrading its delivery platform, optimising its resource utilisation and enhancing its operating efficiency, aiming at further shifting down its cost curve. During the first quarter of 2021, KEX has maintained its net profit margin within the reasonable range, and improve its EBITDA margin to 23.4% from 22.3% during the same period of 2020.
KEX was able to maintain a solid financial position, with total assets of THB 18,032 million as at 31 March 2021. Cash and cash equivalents remained abundant with current ratio of 2.95X and total liabilities to equity ratio of 0.62X.
KEX will continue to remain resilient and agile through all business scenarios and stand ready to capture business opportunities. As we gradually penetrate and further acquire market shares in the economy segment, we have also engaged in yearly volume commitments with our corporate customers which will result in secured volume base for the year 2021.
KEX will continue to upgrade the parcel delivery platform to support broader range of services such as door-to-door service and economy services and the expected incoming volume, by leveraging our existing network with a nationwide presence of customer touchpoints and distribution centres. Moreover, KEX continues to widen the Kerry Everywhere network, engaging synergistic partnerships, enhancing operational efficiency, and diversifying to new business units which strengthen KEX’s competitiveness towards the sustainable growth. – said Mr. Alex Ng, Chief Executive Officer, Kerry Express (Thailand) Company Limited
Following to the post IPO strategies, business diversifications are in progress, additional details will be disclosed soon.