JWD announces Q3/2020 performance of 993.8 MB significant growth over Q2 as logistics & supply chain show quick recovery Yearly performance likely to exceed target
JWD InfoLogistics Public Company Limited (JWD) announced that the Q3/2020 performance grew more significantly than Q2/2020 bucking the economic trend, with total revenue of 993.8 million baht, or an increase of 12.0 percent over the previous quarter and a net profit of 72.5 million baht, or a growth of 50.7 percent over the previous quarter. This is after most of the businesses recovered quickly and new businesses showed a continued growth trend, including the vehicle warehousing and management business, hazardous cargo warehousing and management business, rail yard management and barge terminal business, cold storage, and food service business in Taiwan. The Company expected the overall 2020 revenue to be higher than target.
Dr. Eakapong Tungsrisanguan, Chief Financial Officer of JWD InfoLogistics Public Company Limited (JWD), an ASEAN top logistics and supply chain solution, announced that the Company could manage its businesses in Q3/2020 efficiently amidst the economic overview that has yet to recover. Most logistics and supply chain businesses grew well compared to the previous quarter resulting in the overall revenue of 993.8 million baht, or an increase of 12.0 percent over the previous quarter which was at 887.3 million baht; and a net profit of 72.5 million baht, an increase of 50.7 percent over the previous quarter’s 48.1 million baht.
The segment that has grown significantly was the vehicle warehousing and management business where the revenue recovered rather quickly compared to the previous quarter when it was found that the leading automobile brands who are the Company’s customers have returned to production at approximately 80 percent of production capacity. At the same time, many projects that have been delayed since the beginning the years have resumed. Meanwhile, the hazardous cargo warehousing and management business showed a 10-percent increase in revenue over the previous quarter. Domestic logistics business received a boost from the transport of motor vehicles as production in the industry ramped up, while the cold storage business maintained its high revenue level. In addition, the Company has begun to realize revenue from the food service business in Taiwan with the Q3 revenue growing well following the expansion of the raw material preparation services for leading fast food operations, along with the profit shared from Transimex Corporation in Vietnam.
New business investment that has shown positive growth trend according to targets were the rail yard management and barge terminal business in Laem Chabang Deep Sea Port in Chon Buri Province. The increased revenue was from the lifting and moving of containers that have increased in volume following the formal launch of the port facility. The logistics service that concentrated on B2C group, such as the JWD Express delivery service and ecommerce logistics in cooperation with CJ Logistics saw growth in revenue from the expansion of logistical service area covering the entire country. Also significant is the increase in rentals at all six personal storage locations.
The overview of the performance of the first nine months of the year is considered to be better than expected, with the total revenue of 2,847.2 million baht, or a growth of 6.6 percent compared to the same period of the previous year when the total revenue was 2,671.6 million baht. The net profit was at 214.1 million baht which although was a drop compared to last year still showed good recovery after the COVID-19 crisis, while SG&A (Selling, General & Administrative Expense) was reduced compared to the same period of the previous year by more than 44 million baht.
Mr. Charvanin Bunditkitsada, Chairman of the Executive Committee and CEO of JWD, said the trend of the overall 2020 performance is expected to be about 3,800-4,000 million baht – higher than the previous projection set to maintain the sales at the same level as in the previous year in anticipation of the repercussion from COVID-19. This is indicative in the significant growth in the 9-month performance and the overview of the business that looks to recover continuously in the year’s last quarter.
The vehicle warehousing and management business has the tendency to continue to grow and should return to normal level in the middle of 2021. At present, the Company is in the process of negotiating with many other leading automotive brands in order to expand the customer base. Meanwhile, for the rail yard management and barge terminal business, it is expected that container lifting and moving jobs will increase, including the revenue from service for containers for export. It is expected that in 2021, there will be 15,000 containers per month to be lifted and moved.
For the warehousing business, at present document warehouses and the 9th cold storage are under construction and when finished will utilize robotic system to store the cargo to reduce cost and increase initial profit. The new facilities are expected to become operational in early 2021. At the same time, the first Built-to-Suit warehouse project in Navanakhon Industrial Estate has already started operation and the Company will soon start to realize the revenue from the rental and management of this project.
“We are confident that the performance for this year will be better than the overall economic situation that still has yet to recover, with the JWD business model that aims to expand the investment in Thailand and the ASEAN region, with a portfolio of logistics businesses and diverse supply chain. Therefore, we will be able to deal with the economic repercussion and can return to profit quickly and strongly,” Mr. Charvanin concluded.