KEX reports record-high volume, active users and ascending revenue in Q3/21. Solidify KEX’s ecosystem with new investments, new services and capacity expansion
11 Nov 2021
Following KEX’s continuously proactive pricing strategy, KEX marked a record-high delivery volume in Q3/2021, with an astounding rate of 48.0% growth YoY. Revenue recorded at THB 5,331 million, grew by 18.8% YoY and 15.9% QoQ. KEX’s service quality continues to excel amidst the pandemic: major quality indices reported record-high with 99.86% on-time delivery, less than 1.2% parcel returned and zero operational downtime. KEX will continue to widen its leadership in Thailand’s express industry, along with the creation of its ecosystem through new investments and innovations.
Mr. Alex Ng, CEO of Kerry Express (Thailand) Public Company Limited (“KEX”), revealed that, “Our brand reputation and service quality continues to excel. We have prepared capacity in advance to effectively accommodate record-high demand of KEX services especially in the pandemic environment. KEX has invested part of our short-term margins to prepare spare resources and new capacity to prevent operational seizures caused by the pandemic, as experienced by our peers. Such additional expenses are temporary and are expected to gradually recede. KEX has proven its ability to keep driving down unit cost and will continuously build up cost advantage with scale effect & efficiency enhancement, eventually serving Thailand with high-quality affordable express. Our aggressive pricing strategy has proven successful penetration into the “economy segment” in which KEX has recently welcomed over 7.5 million unique new users. We believe premium-good service at reasonable price will eventually become the norm in a compact market like Thailand, which aligns with KEX’s business direction and growth strategy.”
KEX retains its position as the forefront express delivery service provider while growing into new markets by partnering with industrial leaders. Recently KEX announced a joint-venture with Betagro Group, one of the largest food product company in Thailand, to venture Kerry Cool, a cold express delivery platform driven by world-class quality and technology. This partnership will significantly contribute to KEX’s revenue and profit in the medium-term. Soon, the Company will announce an investment in less-than-truckload (LTL) delivery and an e-Wallet system, KERRY Wallet, to further tie-in KEX’s loyal customers to its ecosystems and to provide the markets with services unseen in the country. KERRY Wallet will uniquely assemble all KEX’s value added services into one place which is easily accessible by users. “We hope our customers will spend more on the value-added services we provide other than only shipping parcels.” Mr. Ng added. KEX reported that in Q3/21, the number of customers using electronic payment methods to pay via KEX had increased by 90.9% YoY.
Last but not least, with S.F. Holding, one of Asia’s best and largest express conglomerates, officially becoming a major shareholder in Kerry Logistics Network (KEX’s major shareholder), KEX’s competitive edge with platform-related technology & know-how and Thailand-China cross border e-commerce will be sharpened, boosting sustainable growth.