JWD InfoLogistics Public Company Limited (JWD) posted impressive performance for Q1/2019 with a revenue of 896.8 million baht on the strength of a 34.9-percent growth compared to the same period last year with net profit skyrocketing 113.9 percent to 89.2 million baht capitalizing on the growth of its storage and cargo management group, transportation group and food group. On the other hand, Q2/2019 is set to realize profit following the investment in Transimex in Vietnam as well as from the joint ventures to expand the logistics services particularly in regard to extra-large cargo and B2B and B2C logistics services for customers in e-commerce.
Dr Eakapong Tungsrisanguan, Chief Financial Officer of JWD InfoLogistics Public Company Limited (JWD), ASEAN top specialized supply chain solutions, revealed that the Q1/2019 (January-March 2019) performance showed a strong growth compared to the same period of last year with the revenue from rental and services totaling 896.8 million baht – and increase of 34.9 percent over 664.9 million baht of the same period last year, and a net revenue of 89.2 million baht – a sharp 113.9-percent hike over last year’s profit of 41.7 million baht. The Company considered this growth to be on line with the target although the overall economic situation early in the year may not have grown significantly.
The factors contributing to the impressive growth in Q1/2019 were good performances of the main business groups as well as the result from the business investment during the past term that have achieved satisfactory revenue and profit. These are (1) the storage and cargo management business group with the overall revenue of 494 million baht – a 10.5-percent growth over the same period of the previous year, particularly the hazardous cargo management business with a revenue of 139.4 million baht – a 13.8-percent increase over the same period of last year and an increase in initial profit of 46.9 percent; cold storage business realized 156.1 million baht in revenue – an increase of 18.2 percent over the same period of the previous year and an increase in initial profit of 40.6 percent; rental and vehicle management services made 115.7 million baht in revenue – a 9.5-percent increase over the same period of the previous year and an increase in initial profit of 32.8 percent; (2) the services and cargo transport business group realized a total revenue of 129.2 million baht – an increase of 17 percent over the same period of the previous year; and, (3) the food business group in Taiwan with a total revenue of 151.9 million baht.
“Overall, JWD has made a very good start this year with a satisfactory first-quarter performance, such as the hazardous cargo management business in which the revenue hit a record high, as an increasing number of customers have availed of various services with the increased entry and departure of hazardous cargo at Laem Chabang Deep Sea Port. This is while more customers have also been using the services cargo transport business group including transport by rail that has expanded over last year’s,” Dr. Eakapong said.
Mr Charvanin Bunditkitsada, Chairman of the Executive Committee and CEO of JWD, said that this year the Company is celebrating its 40th anniversary of business as JWD has progressed to become an ASEAN top specialized logistics and supply chain solutions with the new business structure divided into four branches, namely, Logistics and Supply Chain, Food Supply Chain, IT Solutions and Investment. This move is aimed to increase the Company’s competitive advantage. For the business direction in 2019, the Company set the growth target of 15-20 percent over last year when the revenue of 3,208 million baht was realized from rental and services. The factor will be derived from the expansion of the main businesses with the new cold storage facility (Building 8) to be open for business in June in Mahachai, Samut Sakhon to fulfill the increasing demand for chilling and freezing facilities for foodstuff. This new facility, which is Thailand’s first public cold storage that uses robotics to manage the goods, will be able to reduce manpower by about 50 percent – a factor that will be beneficial to cost management in the long term.
“At the same time, revenue and profit are expected to be reaped from businesses that have been invested in, with the profit sharing from the Company’s 23.66-percent share in Transimex Corporation, Vietnam’s third biggest integrated logistics service provider with listing on Ho Chi Minh City stock exchange, is fully expected in Q2/2019. In addition, the joint venture with Bok Seng to provide logistics services especially for Project Cargo Logistics in Thailand and Lao PDR, and the joint venture with CJ Logistics, a major logistics service provider in South Korea to expand the B2B and B2C customer base in Thailand that are expected to go on stream and start delivering profit to the Company in the second half of this year.
“We believe that, this year, we will see the continuous growth of the Company through businesses in which capital increase have been injected last year, such as the food business in Taiwan that will show the first full-year performance this year with evidently higher number of customers. As for the investment in Bok Seng, this is a wise investment in Thailand’s basic infrastructure, while the joint venture with CJ Logisitcs will result in services for customers in the e-commerce business which is growing extremely fast,” Mr Charvanin concluded.