Indonesian logistics service provider J&T Global Express Limited (J&T Express) have achieved positive adjusted earnings before tax, interest, depreciation, and amortization (EBITDA) for the first time, reaching $147 million in 2023, underpinned by higher revenue.
The firm said in a statement on Monday that J&T has demonstrated significant improvements in operational efficiency and profitability in 2023 as for the first time since its launch, the company achieved a positive full-year gross profit of $473 million.
According to the firm, both the gross margin and adjusted EBITDA in the China market also showed positive results.
The company’s adjusted net loss narrowed by 71 percent to $432 million in 2023.
In 2023, the company experienced growth in market share and revenues in Southeast Asia, China, and New Markets compared to the previous year.
As a result of the exponential growth in these markets, the company’s total revenue for the full year of 2023 reached $8.85 billion, an approximately 22 percent year-on-year increase from $7.27 billion in 2022.
The total number of parcels handled for the year was 18.8 billion, a 29 percent increase from 14.59 billion in 2022.
In the past year, the company’s cash flow turned positive, with operating activities generating $342 million, representing a significant improvement compared to 2022.
As of December 31, 2023, the company’s cash and cash equivalents amounted to $1.48 billion.
“Despite facing multiple challenges from the macro-environment and increasingly fierce market competition, we capitalized on the rapid development of e-commerce across the various markets,
“Leveraging our extensive network of logistics outlets, continuous improvement in operational efficiency and service quality, and the unwavering dedication of our employees, we achieved significant milestones in 2023,” said Steven Fan, Executive President of J&T Express.
According to him, the firm not only reinforced its leading position in Southeast Asia, but also achieved a breakthrough in profitability in its China business and registered rapid growth in emerging markets.
Additionally, he said the firm became a public-listed company in Hong Kong, marking the beginning of a new chapter in its journey.
“In 2024, we are committed to further improving our market share, deepening our cooperation with e-commerce platforms, strengthening our infrastructure, enhancing operational efficiency, and increasing investment in technological innovation and sustainable development,” he added.
Dylan Tey, Chief Financial Officer of J&T Express, commented that in 2023, the company demonstrated exceptional performance with significant revenue growth, improved profitability, increased cash flow, and a strengthened financial position.
“Looking ahead, the compound annual growth rate of global e-commerce retail transaction volume is expected to reach 9 percent from 2024 to 2028,
“Notably, the growth rate of e-commerce business in each of
the 13 markets where we operate has surpassed this global average,” he said.
He also said the firm will proactively capitalize on this significant market opportunity by developing targeted market strategies that leverage its strengths and market positions in each location, aiming to maximize growth, deliver more significant returns, and generate robust shareholder value.
In the face of flourishing market opportunities presented by the e-commerce industry, the company said it is committed to continuously investing and enhancing its overall capabilities to seize the historic opportunities brought by the industry’s rapid expansion.
In Southeast Asia, the company strives to increase its market share and enhance its leading position by providing high-quality services at competitive prices.
In China, its focus will be on further uplifting service quality and brand image to reach a broader base of high-quality customers.
In new markets, the firm will place greater emphasis on high-growth potential regions such as the Middle East and Latin America, as the company aims to seize the historic opportunity of Chinese e-commerce platforms expanding internationally while deepening local capabilities.
The company will provide customized services to cater to the diverse needs of platforms, enabling them to reduce fulfillment costs through competitive pricing.
Additionally, the company will continue the collaboration with e-commerce platforms to develop new products and explore innovative partnership models.
Going forward, the company said it will expand its fleet, increase line-haul routes, acquire land in key transportation hubs, and expand sorting centers and warehousing facilities.
In Southeast Asia and China, the company will offer training and technical support to network partners, bolstering the overall capabilities of the entire network.
In new markets, the company will further enhance the depth and density of network coverage.
The company will also continue to optimize the footprint of sorting centers and route planning and increase investments in the automated equipment and artificial intelligence technology.
The company is also committed to standardizing operational processes and elevating the workforce efficiency across the entire network, to further enhance operational efficiency and service quality.
The company will conduct a comprehensive study to identify high-growth potential markets, with a specific focus on the Middle East and Latin America.
At the same time, it will closely monitor its customers global expansion initiatives and enter new markets at the right timing to ensure that its services could respond to customers’ evolving needs in a timely manner.
The company will continue to invest in technological innovation to upgrade key system functionalities, such as data management and network management, with the aim of
enhancing end-to-end efficiency.
Additionally, the company will broaden the application of radio frequency identification (RFID) technology to reduce its environmental footprint and support sustainability goals.
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