JWD InfoLogistics Pcl, the leading total logistics service provider in ASEAN, continues to grow at an accelerating pace, earning 760.1 million baht in the second quarter, an increase of 31.6% over the same period last year. The first six months of this year saw revenue streams top 1,414.7 million baht, a better performance than anticipated.
Dr. Eakapong Tungsrisanguan, Chief Financial Officer (CFO) of JWD InfoLogistics Public Company Limited (JWD), a leading ‘Total Logistics Solutions Provider’, revealed the company’s operating results for 2Q2018 (Apr-jun’18). Three lines of business have contributed to the remarkable growth in the second quarter. Cold storage earned 151.3 million baht, an increase of 34.8% over the same period last year. This resulted from 87.8% of storage being leased out while occupancy at the Mahachai facility in Samut Sakhon reached a whopping 90% rate. These achievements have helped boost profits in the cold storage business by 40.1% in the second quarter compared to 30.4% last year. The company’s transportation and distribution services have earned 122.1 million baht, an increase of 33% over last year, as a result of increasing transportation services rendered in all categories. Meanwhile, JWD’s moving services have earned 80.5 million baht, an impressive 52.5% increase as a result of expansion both domestically and internationally. Other services have also kept pace. The company’s warehouse management services for general and hazardous goods have also achieved better performance compared to last year’s. JWD will also begin to recognize revenue from its shares following its acquisition in May of 60% equity in Chi Shan Long Feng Food Co., Ltd. (CSLF), a Taiwanese food service provider.
At the same time, the overall performance for the first six months has surpassed all company targets. Its leasing and services sectors have earned 1,414.7 million baht, an increase of 22.9%, compared to an income of 1,150.6 million during the same period last year. This is way over the growth target of 7-10% while yielding a net profit of 90.4 million baht, comparable to its performance last year.
“We have done better than expected in the second quarter, In addition, we will begin to recognize revenues from our acquisition and purchases of stock in overseas businesses, including the food service company in Taiwan and our equity holding in Adib Cold Logistics or ACL which operates cold storage and logistics in Indonesia. This line of undertaking demonstrates our ability to invest prudently and effectively, which should translate into increasing income and profits and enable us to pay off leases of properties from AIMIRT (AIM Industrial Growth Freehold and Leasehold Real Estate Investment Trust) sooner than expected.” said Dr. Eakapong.
Mr. Charvanin Bunditkitsada, Chairman of the Executive Committee and Chief Executive Officer (CEO) of JWD, expresses confidence in the company’s growth prospects in the second half of this year. He said JWD is expecting revenue from its investment in CSLF from the third quarter onward. It will also begin to register higher profits after it increased its stakes in Phnom Penh SEZ Plc. (PPSEZ), a listed developer of industrial estates in the Cambodian stock exchange, from 5.18% to 14.61%. An acquisition of 40% stake in Bok Send PPSEZ Dry Port Co., Ltd. (Bok Seng) will enable JWD to secure the right to operate inland container depots and warehousing and transport businesses in the Phnom Penh Special Economic Zone. This activity also is expected to generate additional profits.
Meanwhile, JWD’s main lines of business, including cold storage, cargo transportation and distribution, and moving services, are enjoying similar positive growth potential. Since July JWD has purchased new container transportation equipment which will make it unnecessary to lease such equipment and thus reduces expenditure and contributes to increasing gross profits.