Kerry sees 35.7% volume growth in H1
published : 13 Aug 2022 at 07:48
newspaper section: Business
Thailand's leading express delivery service Kerry Express announced a 35.7% volume growth in the first half of 2022 year-on-year.
The revenue for the second quarter of this year was reported at 4.2 billion baht, similar to the previous quarter's.
Kerry also announced that in response to a rising fuel price, the firm is adopting a smart pricing strategy to gain sustainable yield along with greater volume growth.
This means that a fuel surcharge has been introduced to neutralise such impact though it is subject to adjustment based on the movement of diesel prices and will eventually be lifted when fuel prices return to normal.
Meanwhile, Kerry said it is strictly executing cost reduction programmes including operations revamp to standardise last-mile process with centralised control for cost-effectiveness and productivity optimisation in the long run.
Kerry expects the impact from cost reduction to accelerate throughout the rest of 2022.
Alex Ng, chief executive of Kerry Express, explained that while the second quarter was reined in by multiple challenges, he is confident the company will soon see a significant improvement in its revenue and profit margin from the cost control initiatives.
"Kerry will continue to execute revenue diversification in addition to its core business to foster new growth in the coming quarters and widen our market leadership," Mr Ng said.
In line with Kerry's business diversification strategy, the company announced that it has entered into a joint venture with China's forefront smart locker company Hive Box to establish Thailand's leading smart locker system.
The newly-formed entity will offer end-to-end drop-off and pick-up solutions with the integration of advanced digitisation and automation powered by Hive Box.
"Hive Box is almost the only locker solution proven to be successful in China," Mr Ng added.
"Kerry partnering with our strategic partners will carry such unique success into Thailand with the right technology, adequate investment as well as exclusive geographical coverage," he said.