JWD Posts Better-than-Expected Q3 Results, Excellent Performances for Transport, to Earn Freight Forwarding Revenue Starting Q4

Stocks and Financial Services Press Releases Friday November 10, 2017 15:54
Bangkok--10 Nov--MT Multimedia

Leading 'Total Logistics Solutions Provider' JWD, announced its Q3 results, which featured better-than-forecasted growth rates, with a net profit figure of THB 56.5m, up 131.6% y-o-y (after extraordinary items) and 14.1% q-o-q, driven by outstanding growths in the inland and cross-border transport, general warehousing, automotive storage and management and cold storage segments. It forecasted continuing growths over Q4 as revenue and profit from the acquisition of Ocean Air International in last October would be recognised and enable it to create new growths by offering total solutions to customers whose businesses involve cargo import and export activities.

Dr Eakapong Tungsrisanguan, Chief Financial Officer (CFO) of JWD InfoLogistics Public Company Limited (JWD), a leading 'Total Logistics Solutions Provider', revealed that JWD recorded impressive revenue and net profit growth rates for Q3 (Jul-Sep) of 2017, with rental and service revenues reaching THB642m, up 15.1% y-o-y from THB558m and 11.1% q-o-q from THB577.8m, and net profit reaching THB56.5m, up 131.6% y-o-y- from THB24.4m (after extraordinary items) and 14.1% q-o-q from THB49.5m.

JWD's Q3 performances by segment include a revenue figure of THB 107.2m for the cargo transport business, up 16.8% q-o-q from THB91.8m (due to an expansion of the cross-border transport operations, especially for Cambodia and Myanmar, as well as jobs from new customers of the JWD Express business), and a revenue figure of THB84.3m for the general warehousing segment, up 12.6% q-o-q from THB74.9m (due to near-full capacity of the JWD Chemical Supply Chain (JCS) business and a greater number of customers of the Less Container Load Freight (or LCL) Consolidation Hub).

For the automotive storage and management business, revenue stood at THB110.1m, up 8.7% q-o-q from THB101.3m (due to increased orders driven by recovery in the automotive industry). The revenue figure for cold storage business was THB119.1m, up 6.1% q-o-q from THB112.2m. The revenue level of the hazardous cargo warehousing segment stood unchanged from the previous quarter.

The strong Q3 growths contributed positively to the nine-month (Jan-Sep) results, with rental and service revenues reaching THB1.7926bn, up 7.9% y-o-y from THB1.6614bn, and net profit reaching THB146.4m, up 87.5% y-o-y from THB78.1m (after extraordinary items). These, in turn, will allow JWD to meet its full-year revenue target of 7%.

Mr Charvanin Bunditkitsada, Chairman of the Executive Committee and Chief Executive Officer (CEO) of JWD, said that Q4 results are forecasted to be improved by invested and planned projects, better overall national economy and export and the stream of revenue and profit from the acquisition of Ocean Air International Co Ltd (OAI), a freight forwarder firm, in last October.

The acquisition has strengthened JWD's product portfolio as the company has become capable of offering freight forwarding services to importers and exporters, and has begun providing 'Total Solutions', or a comprehensive range of upstream and downstream business services, including importation, customs clearance, cargo storage and management and exportation, to customers. It has also reduced the freight forwarding cost incurred in running international moving business, and planned to offer freight services to customers of JWD's existing businesses, e.g. hazardous cargo warehousing, Free Zone warehousing and cold storage, etc., to promote JWD as the hub for consolidation and outbound cargo distribution.

During Q4, JWD will build racking facilities for the JWD Chemical Supply Chain (JCS) business to increase warehousing space vertically and enhance revenue by 50% to 100%. It will also increase the number of four-wheel transport vehicles in its fleet from 20 to 40 by this yearend to facilitate order fulfilment.

""We expect to see sustained growths over the last quarter for all core segments in Thailand and other Asean countries, i.e. hazardous cargo management, cold storage, automotive and, most notably, transport segments. We predict to post the highest growth rate for the transport segment and to benefit from the continuous growths for warehousing and cold storage plants in other Asean countries, as well as from new investments in Indonesia and Vietnam"", added Mr Charvanin.


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