Kerry posts record parcel volume in Q1
published : 20 May 2022 at 04:00
newspaper section: Business
Kerry Express reported its largest ever parcel volume in the first quarter of 2022, recording growth of 46%, outperforming the fourth quarter of 2021.
The company posted total revenue of 4.4 billion baht in the first quarter of 2022, while earnings grew by 19% over the fourth quarter of 2021.
Alex Ng, chief executive of Kerry Express, said the firm is committed to strengthening its leadership position in the Thai delivery market despite challenges in the shipping market overall.
"Amid the industry's heated price competition that coincides with the current economic backdrop where players are seeing their sales retreating, Kerry Express is adopting a smart pricing scheme following the tremendous success of our aggressive pricing strategy," Mr Ng said.
"Following the rise in the starting prices of parcel shipments in the market in the previous quarter, we expect intense competition in the market to ease and foresee market consolidation in the express delivery industry in the medium term with the new bar being cost-effective services, drawing barriers for new players to enter the market. This vision is the foundation of our business direction and various preparations for a sustainable future of the company," he said.
Meanwhile, the company's cost of sales and services, which has been on a downward trajectory, fell 10% from the final quarter of 2021 to 4.6 billion baht.
Together with a zero-debt balance sheet, the company said it is well-positioned to expand the operational capacity to accommodate up to 3 million parcels per day.
By adopting a reseller model in partnership with fourth-party logistics (4PL), Kerry Express has strengthened its presence in the economy segment and brought the number of service locations to over 31,000 in response to the growing market demand.
To further long-term fuel competitiveness and build sustainable growth, the company wants to continue to execute its pipeline projects, including its flagship programme, enabling the firm to offer an immersive experience and penetrate into the customer-to-customer sector, he said.
Underpinning the firm's business diversification strategies in 2022 are Kerry Cool, Kerry XL, Kerry Wallet as well as other projects set to reach full operations this year.