J&T Global Express Limited (J&T Express), an Indonesia-based logistics service provider, said Tuesday it has turned to net profit in the first half of 2024.
The firm said in a statement that in the first half of 2024, all of its profit metrics swung to positive.
The company reported a net profit of $31.07 million, a significant turnaround compared to the loss of $670 million over the same period last year.
Meanwhile, its revenue reached $4.86 billion, representing a year-over-year increase of 20.6 percent.
Revenue of its core business, express delivery services, reached $4.74 billion, marking a year on year increase of 33.7 percent.
During the period, the firm’s total parcel volume increased by 38.3% year on year to 11.01 billion.
The business scale of all operating regions continued to expand, with parcel volume consistently achieving double-digit growth.
In Southeast Asia (SEA), parcel volume grew 42 percent year on year to 2.04 billion, raising its market share to 27.4 percent.
In China, parcel volume rose 37 percent year on year to 8.84 billion.
In newer markets such as Saudi Arabia and Mexico, the parcel volume surged approximately 64 percent to 140 million.
“In the first half of 2024, J&T’s total revenue increased by over 20 percent year on year, primarily driven by the growth in express delivery services across 13 countries,
“With the business in China achieving profitability for the first time, the company’s adjusted earnings before interest and taxes (EBIT) turned positive for the first time,” said Dylan Tey, Chief Financial Officer of J&T Express.
He said the firm maintained a healthy and sustainable profitability in Southeast Asia.
In new markets, he said the firm achieved a significant increase in revenue and reduction of EBIT loss, driven primarily by strong parcel volume growth, as well as continuous management refinement and operational optimization.
It is noted that during the period, the firm’s market share continued to rise, with a 37 percent year on year growth in parcel volume outpacing its peers.
Its market share, in terms of parcel volume in China, reached 11 percent, up 1.1 percentage points year on year.
This was primarily driven by J&T seizing the growth opportunities brought by the rapid growth of social e-commerce and enhancing customer acquisition with cost-effective services.
At the same time, J&T said the firm continued to explore its business development in China’s lower-tier markets, cooperating with a number of e- commerce platforms to undertake consolidation delivery business targeting at remote areas, thereby helping e-commerce vendors and e-commerce platforms to expand to areas that were originally difficult to reach.
In the first half of the year, J&T revenue in the Chinese market was approximately $3 billion, a year-on-year increase of about 36 percent.
The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $200 million, and the adjusted EBIT turned positive for the first time, reaching $59.6 million.
This is mainly due to the company’s relatively stable revenue per parcel in the first half of the year, with the unit cost per parcel of express delivery continuing to decline.
Specifically, the unit cost per parcel dropped by about 6 percent to $0.32.
The firm noted it has benefited from to the continuous implementation of refined management and operational optimization in each process in China, which has continually enhanced the strength and efficiency of our entire network.
Meanwhile, J&T’s full coverage and well-established logistics network in Southeast Asia (SEA), as well as its cost-effective services and strong customer relationships, have continued to serve as competitive advantages.
As a result, the company’s parcel volume in the region increased by 42 percent year on year.
The firm’s market share reached 27.4 percent, up 2 percentage points compared to 2023.
In SEA, J&T continues to seize opportunities in the e-commerce market and actively develop non-e-commerce platform customers.
The company also benefits from both the overall rise in e-commerce volume and the emergence of social commerce, while maintaining a strong commitment to service quality.
In the first half of 2024, revenue of the company’s SEA operations increased by 22 percent year on year to $1.52 billion, adjusted EBITDA grew by 13 percent to $210 million, and adjusted EBIT jumped by 46 percent to US$130 million.
J&T said the firm is committed to providing customers with an enhanced logistics service experience by continuously building its own sorting centers, enhancing the efficiency of self-operated transportation fleets, and investing in automated equipment across various markets.
As of 30 June 2024, the company had approximately 8,000 network partners and around 19,900 outlets. The Company operated 237 sorting centers equipped with 254 automated sorting lines.
Its transportation network comprised over 4,100 line-haul routes, utilizing more than 9,900 vehicles, including over 5,700 that were company-owned.
“We achieved profitability for the first time during this financial period, laying a more solid foundation for the company’s healthy and long-term development,
“Our strategic goal is to build an express delivery network that serves countries around the world, catering not only to international e-commerce platforms but also to local e-commerce and non-platform customers,” said Fan Suzhou, Executive President of J&T Express.
According to him, this will enable them to establish long-term competitive advantages through a comprehensive network, cost-effective solutions, and excellent services.
“Looking ahead, we will closely monitor global market dynamics and carefully select the timing and methods for entering related markets,
“We firmly believe that through hard work and continuous innovation, we will better serve global customers and achieve J&T’s long-term growth objectives,” he added.
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